Trump win and threat of more tariffs raises expectations for more China stimulus

Published On Nov 6, 2024, 9:45 PM

Donald Trump's recent election win has raised tensions surrounding U.S.-China trade relations, particularly with potential new tariffs that could exceed 60% on Chinese goods. Analysts warn that such tariffs could severely impact China's economy, potentially cutting exports by $200 billion and causing a significant drag on GDP at a time when China is struggling with slow growth. China's government is expected to respond with a substantial fiscal stimulus package to stabilize its economy, projecting around 10 trillion yuan in new spending to maintain growth. U.S. stocks are soaring in anticipation of these dynamics while Chinese stocks have seen a decline in response to the looming tariff threat.