'Big Short' investor Steve Eisman says Trump 'basically has to give in' to end the US-China trade war

Jaap Buitendijk/Paramount

Steve Carell (left) plays Steve Eisman in "The Big Short."

• "The Big Short" investor Steve Eisman says Donald Trump would need to surrender to end the US-China trade war.
• "My impression is that China is not backing down on anything," Eisman told Bloomberg TV. "Trump basically has to give in."
• Eisman was played by Steve Carell in the 2015 movie about a group of investors making millions after predicting the US housing crisis of 2008.
• View Markets Insider's homepage for more stories.

  ---

"The Big Short" investor Steve Eisman says Donald Trump would need to surrender to end the yearlong trade war between the US and China.

"My impression is that China is not backing down on anything," Eisman told Bloomberg TV, questioning whether a trade deal was even possible. "Trump basically has to give in."

Eisman, a money manager at Neuberger Berman, played a starring role in Michael Lewis' book about a group of investors predicting the housing crisis and making millions by betting against subprime mortgages. He was played by "The Office" and "Foxcatcher" star Steve Carell in the 2015 movie.

China's handling of the protests in Hong Kong could be an important factor in whether a deal is reached, Eisman told Bloomberg TV. If China mobilizes its military to quash the demonstrations, "the probability of a trade deal between the United States and China would probably go to zero," he said.

The US-China trade war has escalated in recent months. The Trump administration slapped 15% duties on $112 billion worth of Chinese goods on September 1. If a trade deal isn't reached, it plans to hike existing tariffs on $250 billion of Chinese goods from 25% to 30% at the start of October, and has threatened to impose duties on another $160 billion worth of imports in mid-December.

Meanwhile, China has targeted about $120 billion worth of US goods so far. It retaliated with fresh tariffs at the start of September and has a second raft planned for mid-December. The US and China are set to hold trade talks in Washington next month in the hope of striking a deal and avoiding additional tariffs.