Ratings agency S&P Global says US President Donald Trump's pledge to impose a universal 10% tariff on imports and 60% on Chinese goods is likely only a starting point for negotiations.
In a report today, the agency said tariffs are unlikely to be imposed at those levels, but were Trump to follow though, the universal 10% tariff could add as much as 1.8 percentage points to US inflation.
It added that this would trigger a resurgence in inflation in the first year rather than having an ongoing inflationary effect and hit output by as much as 1 percentage point.
S&P said the increase in tariffs to 60% on China could add as much as 1.2 percentage points to inflation, and the hit to output could be around 0.5 percentage points.
comments powered by Disqus
All feeds
