Goldman Says Trump’s New China Tariff Plan Would Slow U.S. Growth

(Bloomberg) — A steep increase in United States tariffs on Chinese imports — which presidential candidate Donald Trump has vowed to impose if he is elected — would hobble the U.S. economy and push inflation up, according to Goldman Sachs Group Inc.

Every percentage point increase in the effective tariff rate would reduce U.S. growth by as much as 0.15% if China retaliates, Goldman analysts said in a note on Saturday. Even if Trump used the resulting revenue to finance tax cuts that would spur spending and investment, the hit to gross domestic product would still be a minimum 0.05%.