Caixin
Jun 09, 2022 02:35 AM
ECONOMY

Goldman Sees 1.2% Boost to Yuan if U.S. Drops Some China Tariffs

Exempting Chinese consumer goods from Trump-era tariffs would translate into $18 billion less revenue and drive the yuan higher
Exempting Chinese consumer goods from Trump-era tariffs would translate into $18 billion less revenue and drive the yuan higher

(Bloomberg) — Rolling back tariffs on Chinese goods may reduce U.S. inflation and push the yuan up 1.2% against the dollar if Washington removes levies on all consumer products, according to Goldman Sachs Group Inc. economists.

Exempting Chinese consumer goods from Trump-era tariffs would translate into $18 billion less revenue and drive the yuan higher, the economists said in a note Wednesday, citing the yuan’s reaction during the U.S.-China trade war. If all Trump tariffs were lifted, the yuan could appreciate 4.9%.

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