Second round of US tariffs ‘could cut China’s growth’
Economists say Asian giant could see reduction of half a percentage point
If US President Donald Trump carries out his threat to impose tariffs on another $200 billion of Chinese imports, it could reduce the Asian powerhouse’s economic growth by as much as half a percentage point, according to economists.
The world’s second-largest economy, as well as the greatest contributor to global growth, is already showing signs of slowing down as the ongoing dispute over tariffs escalates into a potentially lengthy trade war.
China’s economy grew by 6.9% in 2017 and Beijing has a growth target of 6.5% for 2018.
Trump told his staff on Monday to identify $200 billion in Chinese imports for additional tariffs of 10% – to be followed by another $200 billion if Beijing retaliates.
Trump has already pledged to impose tariffs of 25% on $50 billion of goods, starting on July 6 with an initial $34 billion worth of imports.