US unlikely to suffer big damage from China trade row: Bullard

May 21, 2019 08:58
The China trade war will hurt the US economy only if the dispute is protracted, says St. Louis Fed President James Bullard. Photo: Reuters

Trade tensions with China need to linger for an extended period to cause real damage to the United States economy, St. Louis Fed President James Bullard said in remarks published on Monday, Reuters reports.

“I think the U.S. is such a big and diversified economy that the impact compared to the size of the entire economy would be relatively small,” Bullard, a voting member of the Federal Open Market Committee, was quoted as saying in the online edition of Handelsblatt.

“In order to do real damage to the U.S. it would have to go on for some time.”

Engaged in a lengthy trade standoff, the United States and China have raised tariffs on a range of goods, raising fears that their conflict would develop into a trade war, damaging the global economy and worsening its recent growth wobble.

Bullard said the trade conflict appears to get more attention outside the United States because the conflict may disturb trade patterns and slow investment outside the US, particularly in the case of small, open and trade-reliant economies.

“For them it can be very damaging, if the trade network is upset or even threatening to be upset. Smaller countries are caught in the crossfire,” Bullard said.

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