US-China tariff hike will trigger downturn, says UN
Implications for the entire international trading system will be significantly negative, Unctad study shows
Geneva — A US plan to hike tariffs on China in March could trigger an economic downturn and let other countries take over about $200bn of China's exports, a study by the UN trade and development agency Unctad says. The US levied additional duties of 10% to 25% on $250bn of Chinese goods last year as punishment for what it called unfair trade practices, and the 10% tariffs are set to climb to 25% unless there is significant headway on a trade deal by March 1. "The implications are going to be massive," Pamela Coke-Hamilton, head of international trade at Unctad, told a news conference. "The implications for the entire international trading system will be significantly negative." She said the US tariff hike and a retaliatory move by China would trigger an economic downturn due to instability in commodities and financial markets, while company moves to adapt would put pressure on global growth.
"There'll be currency wars and devaluation, stagflation leading to job losses and high...