Trade War Update: China To Suffer Greater Loss Of Income Than U.S. [Forbes]
Barclays PLC (BCS)
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Source: Forbes
Kenneth Rapoza Senior Contributor i Markets I write about business and investing in emerging markets. Chinese President Xi Jinping. Barclays Capital says China will see a bigger income hit in a trade war than the U.S., due to the fact that its economy is more dependent on exports. (AP Photo/Themba Hadebe) Guess what? This trade war thing with China...yeah, it's going to get worse before it gets better. Barclays Capital now assumes that the U.S. will place tariffs of 20% on all imports coming from China and China will do the same, only with a lesser total amount of goods being tariffed due to the yawning trade gap between the two parties. Barclays said in a note to clients Tuesday that assuming everything traded gets tariffed, it reduce 2017 merchandise trade volume between the U.S. and China by $156.5 billion. In reality, the adjustment in volumes is likely to play out over time, says BarCap
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