The new US tariff imposed on Chinese products may deal with another blowout to China, and it is not known as to how much Beijing could do more to boost its economy, said a JP Morgan economist on Friday.
Since the time the tariff battle began between Beijing and Washington around 12 months ago, the Chinese authorities continually have utilised both fiscal and monetary policies in order to confine the economic destruction brought by the increased US tariff. These measures have helped to a certain extent, as per chief economist Brice Kasman at JP Morgan.
President of the US, Donald Trump announced early August that starting 1 September, an extra 10 percent tariff would be imposed on $300bn Chinese goods. However, the Office of the US Trade Representative removed a few items from its targeted goods list later and postponed the application of the new tariffs on a few products until 15 December.
Nevertheless, several economists have told that the extra tariffs implied on the Chinese goods that are imported by US will affected the economy of China badly. Growth has slowed down already in the Asian economic giant, with Beijing informing weakest gross domestic rate expansion in last 27 years, of 6.2 percent in Q2 of 2019.