China’s Economic Outlook Dims Amid Rising Tariff Risks
S&P Global forecasts that 10% tariffs could slow China’s economy to 4.1% in 2025, with a sharper decline under higher tariffs. Before the latest tariffs, the International Monetary Fund (IMF) projected China’s economy to grow by 4.6% in 2025.
Higher US tariffs in response to any retaliation from China could further impact the economy and global trade terms. The question will be whether Beijing will risk testing Trump’s resolve, considering the potential impact on global trade.
Economists expect US tariffs to push US import prices higher, fueling inflationary pressures. The Fed could react to higher inflation by pivoting to a hawkish policy outlook. Higher interest rates could…
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