During the previous two rounds of US tariff hikes, China’s response was largely symbolic, says Herrero — “loud in rhetoric but restrained in action”. This time, however, Beijing raised import tariffs on all US goods directly to 70%.
Despite the US’s harsh tariffs on China, the world’s second-largest economy should still manage to grow around 4% this year by lowering interest rates, expanding liquidity and also offering tax breaks to its exports, says Alicia Garcia Herrero, chief economist, Asia Pacific, Natixis Corporate & Investment Banking (CIB).
US President Donald Trump unveiled on April 2 an additional 34% tariff on all Chinese goods imported into the US, bringing duties on all Chinese imports to the US to over 54% when accounting for existing tariffs.
