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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.
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.
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