Trade War Will Be Long Haul, China Growth Drag Larger
(Bloomberg) -- The U.S.-China trade war is shaping up to be a long confrontation. The Trump administration will apply a 10 percent tariff on about $200 billion of imports from China on Sept. 24 and raise the duty to 25 percent in 2019 -- this is on top of $50 billion of Chinese goods the U.S. has already targeted with a 25 percent tariff, prompting China to retaliate in kind. Bloomberg Economics’ initial estimate is that the tariffs will take 0.5 percentage point off China’s GDP growth, and the cost will be around 0.9 percentage point a year when the 25 percent tariff on the latest round of goods takes effect.
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