Surging Tariffs On China Can Impact The U.S. Progress: Nomura – Market News Store

Surging Tariffs On China Can Impact The U.S. Progress: Nomura

Increasing tariffs on all Chinese products that enter American borders would possibly impact the U.S. economic progress, which has already shown indications of slowing in the last few months, as per to Japanese financial company Nomura. The U.S. President Donald Trump has alleged on several occasions that the U.S. has fetched billions of dollars in taxes paid by the Chinese, which partially contributed to the tough American economy. Lewis Alexander—Nomura’s Chief US Economist—said to CNBC that the net effect of the tariff battle is negative for the U.S. The tensions amid the U.S. and China heightened previously this month when Trump declared an increase in tariffs on Chinese goods of worth $200 Billion from 10% to 25%. He also warned to impose 25% tariffs on the remaining Chinese goods worth around $300 Billion.

Beijing retaliated by increasing levies on $60 Billion of American goods. Alexander stated there is evidence that tariffs fetched by the U.S. administration are being paid by American consumers and firms, rather than the Chinese. At the NIFA (Nomura Investment Forum Asia), Singapore, he further stated, “And honestly, on the net scale, it is possible to be a drag on the U.S. growth rather than neutral.” The persisted tariff battle amid the U.S. and China came at a time when the American financial system is “evidently slowing,” the economist asserted.

On a related note, the EU (European Union) was chilled by the U.S.-China trade battle as auto tariffs remain a threat. The continuing trade war amid the two largest economies globally has started to impact Europe. And if escalating tensions lead the U.S. on imposing auto tariffs, the upshots on European countries—mainly Italy and Germany—will worsen, as per to Goldman Sachs. The White House declared a 6-Month delay to the decision on whether to inflict tariffs on autos and auto parts, giving a temporary comfort to European countries.

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