China Macroeconomics & Academia

Christopher Balding

Macroeconomics

<p>With new tariffs set to come into play, it is worth pointing out that overall the trade has not dropped off as a result. We see bilateral trade growing on trend. While the tariffs are likely to slow the growth we see in trade, we believe it is unlikely to cause a major disruption to trade absent significantly more escalation. Costs will exist and will lower trade values slightly, but do not believe it will significantly impact overall trade. There is a possibility that these latest tariffs impact growth, but if reaction to recent tariffs is any indication, we do not believe this will be the case.</p>

With new tariffs set to come into play, it is worth pointing out that overall the trade has not dropped off as a result. We see bilateral trade growing on trend. While the tariffs are likely to slow the growth we see in trade, we believe it is unlikely to cause a major disruption to trade absent significantly more escalation. Costs will exist and will lower trade values slightly, but do not believe it will significantly impact overall trade. There is a possibility that these latest tariffs impact growth, but if reaction to recent tariffs is any indication, we do not believe this will be the case.

Trump Proposes New Tariffs but US China Trade Continues Growing on Trend