According to Bloomberg estimations, the new U.S. tariffs announced overnight by Donald Trump on Chinese imports worth $200 billion will cut from China’s current 6.5 percent GDP growth.
The current 25% tariffs on products worth $50 billion, plus the new 10% tariffs on $200 billion imports will cut 0.5 percentage point off China’s GDP growth.
Starting from January 1, 2019, when the new tariffs will be increased to 25 percent on $250 billion Chinese imports, the Chinese economy would suffer a 0.9 percentage point loss a year from GDP.
More tariffs threatened over uncertain horizon are estimated to cut a
whooping 1.5 percentage point off China’s growth.