The US tariffs on China are expected to dampen China's exports, investment and consumption, dragging down its gross domestic product growth by 0.3 to 0.4 percentage points, says a UBS economist. Wang Tao, head of Asia economic research at the investment bank, expects the tariffs to negatively impact China’s inflation by about 0.2 percentage points. China might, based on past experience and scenario analysis, hold off on immediate countermeasures while keeping the door open for negotiations and cooperation, he said. Wang added that the recent tariff hike came promptly and at a lower rate but there remains considerable uncertainty about the timing and scale of additional tariffs, as the Trump administration is reviewing its trade policy, with reports due by April 1, when further tariff measures may be considered.

Melody Chen