Investor Steve Eisman believes that the United States is likely to come out on top in a global trade war due to its smaller reliance on exports compared to other nations. Eisman suggests that the US is better positioned to handle a potential recession than other countries. He anticipates that the US, led by President Donald Trump, could succeed in trade negotiations and that foreign nations may need to comply with American demands to prevent severe economic repercussions. Eisman points out that while the trade conflict has caused market uncertainty and criticism from Wall Street supporters of Trump, the US's lower export dependency compared to other countries gives it an advantage in negotiations. Despite retaliatory actions from countries like Mexico, Canada, and China, Eisman remains optimistic that a trade war resolution can be reached. If Eisman's analysis is correct and the US fares better than other economies during the trade war, this could benefit investors as American assets become more appealing. Analysts also highlight that the US's strong economic fundamentals, such as full employment and a diverse service-led economy, set it apart from its international counterparts, potentially minimizing the impact of the trade dispute on the US economy.
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