A trade detente agreed between US President Donald Trump and his Chinese counterpart Xi Jinping would limit the tariff blow to both economies and see Beijing maintain the bulk of its exports to America, Bloomberg Economics writes.
If the US drops the 20% fentanyl-related tariff on China but maintains sectoral levies and a 10% reciprocal rate, China would lose less than 10% of its exports to the US versus a projected slump of 70% if tariffs remain at today’s levels, economists Maeva Cousin and Rana Sajedi wrote in a note. The hit to US gross domestic product would shrink to 0.5% in that scenario, they said.