A seismic tariff escalation from President Donald Trump has triggered a sharp downgrade to China’s growth forecasts, with Goldman Sachs now projecting a sluggish economic recovery and warning of deep labor market consequences.
In a note shared Thursday, a team of Goldman Sachs economists led by Andrew Tilton said the sudden tariff spike announced on April 9 — lifting U.S. duties on Chinese goods to 125% — is poised to hammer China’s GDP and jeopardize up to 20 million export-linked jobs.
Tariff Tsunami Raises Economic Stakes
Trump’s move follows a tit-for-tat exchange with Beijing, which retaliated by hiking tariffs on U.S. goods to 84%, up from prior levels. The cumulative effect has pushed the U.S. effective tariff rate on Chinese goods from 11% at the start of his administration to today’s eye-watering 125%.
According to Goldman’s estimates, that jump alone could slash Chinese real GDP by 2.6 percentage points — with a 2.2 percentage point …Full story available on Benzinga.com
First Voyage raises $2.5M for its AI companion helps you build habits
...
Read moreDetails
