How will the new US tariffs affect China’s growth?

  • by Ahmed Mamdouh
  • September 18, 2018, 1:42 AM
  • 1308 Views
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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.

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