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Small economies and 'the art of no deal'

With US-China trade ties settling into an uneasy truce, the world has to prepare for a prolonged period of uncertainty. Small states will have to draw on their traditional resilience to thrive.

The past couple of months have been a particularly turbulent period for the global economy. The imposition of additional tariffs on United States' imports of Chinese goods last month, the subsequent retaliation by China, as well as various sanctions on technology firms like Huawei, have roiled global markets and added further uncertainty to an already subdued global economic picture.

Elsewhere, the unilateral US threat to impose tariffs on Mexico to pressure its government on immigration issues (subsequently resolved) and the continued economic trade friction between the US and Europe show that there are challenges to the world trade system on multiple fronts.

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A version of this article appeared in the print edition of The Straits Times on June 29, 2019, with the headline 'Small economies and 'the art of no deal''. Print Edition | Subscribe