Goldman Sachs Predicts 20% Average Tariffs on Chinese Imports Under Trump, Not 60%

Economy

1 year ago

News sources:

Credited from: SCMP

Goldman Sachs projects that the average tariff on Chinese imports under President Trump will likely be around 20%, despite his original campaign promise of 60%.
The chief economist, Jan Hatzius, noted that while most goods might face 20% tariffs, certain key capital goods like solar panels, steel, and aluminium could see rates rise to 60%.
Hatzius emphasized that China has several responses ready should tensions escalate in trade, including export controls and financial leverage.
Trump's tariff strategy builds on previous tariffs imposed during his first term which affected over $300 billion of Chinese goods.
The economist warned that a shift to an average of 20% tariffs on imports could lead to 0.7% reduction in China's GDP growth.