China's Response to U.S. Tariffs to Be 'Quite Measured,' Professor Lau Says

The video discusses the impact of potential tariffs on Chinese exports to the US, which constitute about 3.5% of China's GDP. It highlights the manageable nature of these tariffs, comparing them to the 2009 Lehman crisis. The initial impact would be on US consumers, with tariffs likely increasing the consumer price index. The video also explores China's measured response, focusing on local impacts in regions like Guangdong and Iowa, and suggests that both countries will not be severely harmed by the trade war.

What impact might the trade war have on consumers in the US?

What is the overall expectation regarding the impact of the trade war on both the US and China?