JPMorgan Chase: Further Escalation of Trade Dispute Will Significantly Impact China's Economy
Trade war between the US and China is intensifying. The US and China have activated additional tariffs on $50bn of each other's goods since July as trade friction between the world's two biggest economies worsened. Donald Trump plans to impose additional tariffs on the Chinese goods worth $200b. The US list includes consumer products such as cameras and recording devices, luggage, handbags, tires and vacuum cleaners, with additional tariffs ranging from 10% to 25%.
According to JPMorgan Chase, the tariff battle will probably cost China 700.000 jobs, or more in the event of further escalation. If the US imposes 25% tariffs on all Chinese imports and China retaliates with the levies already announced, the measures will mean 5.5 million lost jobs and 1.3% cut off gross domestic product growth.