Roula Khalaf, Editor of the FT, highlights significant stories in her weekly newsletter, emphasizing the evolving dynamics of US-China trade relations. The article critiques the longstanding free-trade perspective, arguing that tariffs, particularly on intermediate goods, can enhance domestic competitiveness by encouraging local production despite criticisms about increased costs. It suggests that the US’s vast consumer market allows for growth through tariffs, which could foster innovation and better outcomes than a global market increasingly influenced by state-subsidized firms.
