28.11.2024.
8:45
"A storm is brewing": Trump promised...
China will allow the yuan to weaken by as much as 10 to 15 percent in response to a trade war that could be triggered by the newly elected President of the United States, Donald Trump, according to a report by the JP Morgan bank.
In a note titled "A storm is brewing," JP Morgan economists forecast that Washington will raise tariffs on goods from China to 60 percent from the current 20 percent, which could slow China's economic growth in 2025 from an announced 4.8 percent in 2024 to 3.9 percent.
This week, Trump promised to impose tariffs of 25 percent on all imports from Canada and Mexico and an additional 10 percent on Chinese goods.
Newly appointed US Trade Representative Jamieson Greer played a key role in imposing tariffs on China during Trump's first term, Bloomberg reports.
More broadly, JP Morgan predicts that China's announced tariffs will slow emerging market growth from 4.1 percent this year to 3.4 percent in 2025.
Trump's measures will hit countries in Asia like Malaysia and Vietnam hard, least of all India, the report added.
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