US President Trump imposed fresh tariffs on Chinese imports, China to retaliate
This morning, US President Trump decided to impose an import tariff on about US$ 200 bn of Chinese imports. In a first period, tariffs of 10% will come into effect on September 24, 2018 until year end. They will rise to 25% on January 1, 2019. This measure is intended to allow US companies to adjust their supply chains to other countries (if possible).
- US President Trump imposed fresh tariffs on Chinese imports worth US$ 200 bn.
- he tariffs will come in two steps: a 10% tariff by Sep. 24, 2018, a 25% tariff on Jan 1, 2019.
- China announced to retaliate, but the exact measures are not known yet.
- China will calibrate its fiscal policy to protect its growth targets. However, this is unlikely to involve a big bang policy package.