US puts global economic recovery at risk with tariffs

10 July, 2018 12:00 AM printer

Beijing: The US is launching a trade war that no one will come out of as a winner, Chinese officials and economists said on Sunday.

Though Chinese consumer products are expected to be the hardest hit from the US tariffs that went into effect on Friday, the impact is still “controllable” and the Chinese goods will eventually reach American consumers who would find it difficult to find an alternative, economists in Beijing said, report Agencies.

The overall impact of the US tariffs will be limited on the Chinese economy, said Ma Jun, member of the People’s Bank of China’s monetary policy committee, in a statement.

American tariffs on $50 billion (Dh183.5 billion) worth of Chinese goods will cut China’s gross domestic product (GDP) by 0.2 percentage points, but the overall impact of the move is expected to be limited, said Ma Jun in his statement published in China Daily, the only English language newspaper in the Asian country.

Shortly after the American taxes against $34 billion Chinese products came into effect on Friday, China responded by imposing tariffs on US goods with the same value, including vehicles and agricultural products.

Additional tariffs on another group of $16 billion in Chinese goods will undergo further review in the US, reports said.

“We have sufficient, diversified and flexible monetary policy tools to achieve the annual growth targets, including the GDP growth rate and inflation level, and to control the unemployment rates,” Liu Wei, President of the Renmin University of China, and member of the Central Bank’s monetary policy committee, was quoted as saying by the Chinese press.

Chinese economist Li Daokui said industries like consumer goods, electronics and manufacturing would be affected the most, but that impact is “controllable”, and that US customers will eventually pay the increased taxes because they rely on Chinese products.