After the strong escalation of the commercial war between the US and China in April, a direct shock of exports to the US is imminent. Exemptions for electronics, commercial elusion/reorientation and more support will mitigate this clash. We have reduced our annual growth forecasts by 2025/2026 to 4.1% (from 4.3%) and 3.9% (from 4.2%), ABN Amro economists point out.
The tariff war is deepened while the US and China are thrown out
“From the ‘US Liberation Day’ On April 2, the tariff war between the US and China has intensified, with the US now imposing 145% on China imports (and 125% vice versa).
“Beijing probably feels that it now has the advantage, since the US faces the macroeconomic and market consequences of its tariff policy. China will also feel the pain of the commercial war, but does not face mid -term elections next year and, therefore, it can have a greater ‘pain tolerance’. China also has leverage of the US through its great holdings of the American treasure bonds.”
“We already assumed that China would be ‘pointed out’ in terms of tariff USA against China. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
