Economics
Trump’s Tariffs Could Deliver a Sizable Hit to China’s Economy
- UBS, Deutsche Bank calculate growth impact from tariff hikes
- Beijing has significant firepower to counter any slowdown
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Donald Trump’s threat to impose tariffs on another $200 billion of Chinese imports could cut as much as half a percentage point from the nation’s economic growth, according to economists.
The warning comes amid signs that the world’s second biggest economy -- and biggest contributor to global growth -- is already slowing down as a simmering trade dispute with the U.S. risks spiraling into a protracted trade war. China’s economy grew by 6.9 percent in 2017 and the government has set a growth target of 6.5 percent for the current year.