'Don't be so smug' on Trump tariffs, Stephen Roach warns in Hong Kong

HONG KONG -- Prominent economist Stephen Roach has warned against underestimating U.S. President-elect Donald Trump's campaign promise to slap heavy trade tariffs on China and the rest of the world.

"There is a great conviction that the world economy is in perfect shape right now, but here I tell you that is overly optimistic," Roach, a senior fellow at the Paul Tsai China Center of Yale Law School and a former chairman at Morgan Stanley Asia, told a forum in Hong Kong on Friday.