‘Gloves off’ in US-China trade war with Trump’s surprise tariff spikes
Analysts warn that the latest US tariff increases on goods from China and other trading partners could trigger one of the most significant trade wars in a century. The new tariffs, including an additional 10% on Chinese imports on top of existing ones, are expected to inflict deeper pain on Chinese exporters this year, especially if further hikes are implemented without a bilateral trade agreement.
US President Donald Trump announced the additional tariffs, effectively doubling the existing 10% tariff imposed in February. Economists project that the combined tariff wave could reduce China's GDP by 0.4-0.8 percentage points in 2025, squeezing the profits of exporters in the American market as goods from other countries become more competitive due to lower tariff burdens. Former US trade negotiator Stephen Olson noted that while the initial 10% tariff was manageable, the additional 10% will be far more problematic.
via SCMP Full Text Feed
Analysts warn that the latest US tariff increases on goods from China and other trading partners could trigger one of the most significant trade wars in a century. The new tariffs, including an additional 10% on Chinese imports on top of existing ones, are expected to inflict deeper pain on Chinese exporters this year, especially if further hikes are implemented without a bilateral trade agreement.
US President Donald Trump announced the additional tariffs, effectively doubling the existing 10% tariff imposed in February. Economists project that the combined tariff wave could reduce China's GDP by 0.4-0.8 percentage points in 2025, squeezing the profits of exporters in the American market as goods from other countries become more competitive due to lower tariff burdens. Former US trade negotiator Stephen Olson noted that while the initial 10% tariff was manageable, the additional 10% will be far more problematic.
via SCMP Full Text Feed
