“Needless to say, China would be the worst affected,” Aziz wrote.
China could allow its yuan to depreciate by as much as 10%-15% in response to any trade wars unleashed by President-elect Donald Trump, according to JPMorgan Chase & Co.
In a note entitled “Bracing for a storm”, JPMorgan economists led by Jahangir Aziz say emerging economies will take a knock from Trump’s pledges for higher trade tariffs but “expect trade policy toward China to shift the earliest and materially.”
