Both U.S. and Chinese markets could be disrupted if President-elect Donald Trump starts a trade war with China, Bob Hormats, vice chairman of Kissinger Associates, told CNBC on Thursday.
Hormats, former vice chairman of Goldman Sachs (International), said Trump could dangle threats in front of China or implement a tariff on imports, but, in any case, there are likely to be consequences.
"Importers, particularly Wal-Mart's, and others buy a lot of Chinese goods because Americans buy them and they get them cheaper on the shelves of these stores. What happens to the price of those items? What happens to the large companies that are selling in China whose profits depend heavily on it?," Hormats said on "Squawk on the Street."
Renegotiating global trade deals was a major selling point of Trump's campaign platform. The president-elect has boasted that he was able convince air-conditioner manufacturer Carrier to scale back announced job cuts as...Read more...