Prof. Fung Kwan
Views On The World
On May 1, 2025, Prof. Fung Kwan, Assistant Professor of Economics at the University of Macau’s Faculty of Social Sciences and a researcher at the Asia-Pacific Academy of Economics and Management, was interviewed by TDM (Teledifusão de Macau) ‘s radio program Views On The World to discuss the recent tariff negotiations between the U.S. government and countries such as Japan, South Korea, and India. While the U.S. claims that its “reciprocal tariffs” aim to correct trade imbalances, analysis suggests that the policy’s effectiveness in addressing fiscal deficits and industrial restructuring remains questionable.
Prof. Fung Kwan pointed out that the trade deficit emphasized by the U.S. government only reflects part of the U.S. balance of payments. Although the U.S. runs a deficit in goods trade, it maintains surpluses in services trade and financial accounts, indicating an overall balanced international payments position. He argued that it is insufficient to determine whether the U.S. is “losing out” based solely on the goods trade deficit, and the country’s long-term economic growth trend further demonstrates that trade deficits are not a direct indicator of economic performance. In the interview, Prof. Kwan also discussed some possible motives behind the U.S. tariff hikes.
Recent slowdowns in U.S. economic growth and financial market volatility have already reflected market concerns about the policy. Prof. Fung Kwan noted that if high-tariff policies persist, they could further increase economic uncertainty. Whether these measures can truly achieve the goals proclaimed by the U.S. government remains to be seen.
For more insights, please listen to the radio interview via this link.