Tariffs Will Cut China Growth by One Point, Citi Says

An increase of tariffs on $200 billion of Chinese goods would cut 0.5 percentage points off China’s growth over one to two years, and the impact could more than double if duties are slapped on all its shipments to the U.S.

That’s according to Citigroup Global Markets Inc economist Cesar Rojas, who also wrote in a May 8 note that raising tariffs on $200 billion of China’s goods to 25 percent from 10 percent on Friday would slice 0.2 percentage points off global growth over the same period. The impact on global expansion also would also double if duties of 25 percent are slapped on the remaining Chinese imports, he said.