Larry Hu, chief Chinese economist at investment bank Macquarie, estimates that these responsibilities could reduce China’s export points by 15 percentage points, and its GDP grew by 2-2.5 percentage points.
“This impact may be manifested through multiple channels, such as a blow to the decline in U.S. demand for Chinese goods, potential global economic slowdowns and export rearrangements,” Hu wrote in a research note.
This year, China set its GDP growth target at 5% as its economy stumbles due to a stagnant domestic consumption and housing sector crisis. The latest 34% tariff, Trump’s imposition of China’s exports is 54%. It’s a supplement to the tariffs of about 15% that Trump slapped during the last session. Trump’s successor, Joe Biden, retained these responsibilities.
In addition, Trump ended his tax exemption for small parcel exports in China, at $30 billion a year. China’s exports are the main driver of economic growth and are expected to decline sharply, the SCMP report said.
