d to bear the brunt of the tariff hike, because the tariffs will raise t
he prices of consumer goods. Besides, the higher tariffs will deal a blow to many US industries.
China’s countermeasure will have intended effect
The results of a quantitative simulation analysis show China’s counterm
easure of imposing tariffs on $60 billion of US goo
ds will have the intended effect, as the US’ losses are set to mount. According to the simulation analysis, China’s GDP, man
ufacturing jobs, exports and imports could reduce by 0.622 percent, 1.046 percent, 3.402 percent and 1.945 percent, w
hile that of the US could dip by 0.067 percent, 0.907 percent, 2.611 percent and 3.936 percent.