U.S. tariffs on imported goods from China and other parts of the world — and President Donald Trump's generally antagonistic stance with trade partners — is creating risks to the American economy, according to New York University economics professor Nouriel Roubini.
Global economies were growing in sync with each other, and that boosted optimism and business and consumer confidence. But lately that dynamic has begun to break down, with rising interest rates by the Federal Reserve and a possible trade war with China threatening to erode the situation even further, Roubini told CNBC's "Closing Bell" on Tuesday.
He notes that the euro zone slowed first, followed by the U.K. and Japan. "The two key elements of global growth have remained the U.S. and China, and now the U.S. and China are on the verge of a trade war," he said. "There are actually signs of a slowdown of global growth in emerging markets, and the Fed keeps on tightening. So, this is a moment of some degree of fragility."
The U.S. rivalry with China entangles more than just soybeans and electronic components. It's about national security, technology and other issues as the world's two biggest economies square off, he said. "It's going to get worse given this rivalry between the U.S. and China."