The remarks came as the world’s two largest economies remain in a stand-off over sweeping tariffs that Washington imposed this month.
Speaking on RTHK’s Hong Kong Today programme, Sachs, who teaches economics at Columbia University, said it was a “mistake” for the United States to launch the trade war.
“There’s no doubt it started on the US side. The US actions violate international rules, and they violate economic sense. They will create costs, both for the US, for China, and for the rest of the world. But the biggest costs will be born by the United States, especially US consumers,” he said.
“The US consumers will face higher prices and lower living standards, that’s why they’re pessimistic. Some consumers are already cutting back on their consumption knowing that they’re going to suffer a decline of living standards in future months, even with the risk of a recession.”
“[But] I think that the [consumer] costs in China will be much lower,” he added.
Noting that China’s shipments to the US amounted to around US$440 billion last year, Sachs said that accounted for only a small share of the country’s total US$3.68 trillion worth of exports in 2024.
“The truth is, the United States is not going to win this trade war, as China is just not as dependent on the US market as Donald Trump seems to think.”
Separately, Sachs, who is also the director of Columbia’s Centre for Sustainable Development, noted the global trading system would remain open despite the sweeping tariffs.
“The open trading system will continue, but the United States might not be part of it, and this will be at a big cost to the United States, a big economic cost, a big development cost, and a big geopolitical cost.”
