Post
Topic
Board Economics
Topic OP
Trumpophobic Chinese Economy
by
Jamala
on 14/05/2025, 20:30:53 UTC
It all started with a mixed market dynamics, the US stock market plummeting to new lows, and GDP falling by 0.9% in the early days of the Trump tariff war resulting from about 16% import reduction. This excludes the 10% baseline Canada and Mexico tariffs. Many trade models could not determine the full effect of the tariffs as retaliatory actions swept in. Huge tariffs temporarily limited the accessibility of the US market to external investors and stunted domestic growth. Investors trembled as the tariffs effects took time to revert the downward trend. China responded with counter measures which has not stopped the downward trend of its GDP nor given then a relief. So, if Trump applies further measures, the US economy will be great again.