El-Erian Says Trump's Deals With EU, Japan Increase Pressure On China To Strike Its Agreement

The economist stated that China striking a deal with the U.S. is not only essential for its relationship with the United States, but also for its other trade partners.
Mohamed El-Erian, Chief Economic Adviser of Allianz, during an interaction
Mohamed El-Erian, Chief Economic Adviser of Allianz, during an interaction. (Photo by Rob Kim/Getty Images)
Profile Image
Rounak Jain·Stocktwits
Updated Jul 28, 2025 | 10:16 AM GMT-04
Share this article

Notable economist Mohamed El-Erian on Monday said President Donald Trump’s recent deals with the European Union and Japan, among others, will increase pressure on China to strike an agreement with the United States.

In a post on the social media platform X, El-Erian stated that China striking a deal with the U.S. is not only essential for its relationship with the United States, but also for its other trade partners.

“The timing and content of this weekend's US trade deal with the European Union—following those with Canada, Japan, and Mexico—increase pressure on China to reach its own deal with Washington,” the chief economic advisor of Allianz said in the post.

Mohamed El-Erian's post on X

El-Erian had previously said President Trump’s tariffs have put the era of U.S. exceptionalism “on pause.”

In an interview with MarketWatch, however, he stated that he was not averse to Trump’s tariffs, but his warning was instead about a prolonged trade war.

El-Erian’s comments come after the Trump administration secured some wins in its tariff war, having struck deals with major trade partners such as the EU and Japan, as well as with allies like the U.K. Other countries on the list include Indonesia, Vietnam, and the Philippines.

Meanwhile, U.S. equities edged up in Monday morning trading following the EU tariff deal.

The SPDR S&P 500 ETF (SPY), which mirrors the S&P 500 index, was up 0.02% at the time of writing, while the Invesco QQQ Trust (QQQ), which mirrors the Nasdaq 100, rose 0.31%. Retail sentiment around the S&P 500 ETF on Stocktwits was in the ‘bullish’ territory.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Subscribe to The Daily Rip
All Newsletters
Get the daily email that keeps you tuned in and makes markets fun again.

Also See: Firefly Aerospace IPO: Space Startup Aims For $5.5B Valuation As Market Debut Nears

Read about our editorial guidelines and ethics policy

Advertisement. Remove ads.