China, US trade war to have limited impact: Economists

Economic damage of trade war will be smaller than its perceived risk, experts say
ISTANBUL: The trade war between China and the U.S. is not likely to have a disruptive impact, according to top economists.
“There is a low probability of disruptive trade war,” Mickey Levy, chief economist for Americas and Asia at ‎Berenberg Capital Markets, told Anadolu Agency.
Levy called President Donald Trump’s tactics “erratic” and “unpredictable”.
He said rising uncertainties and financial market volatility may dampen confidence and weigh on economic performance.
He also said Trump’s trade negotiations with EU and Japan will result in lower trade barriers.
Holger Schmieding, a chief economist at Berenberg Bank, said economic damage of the trade war remains much smaller than the risk.
“Effects of the trade war between China and U.S. is likely to be benign,” Schmieding said.
He underlined that EU was a top global power regarding trade which was able to act.
“EU is most likely to act roughly in line with economic logic,” he said.
Last month, Trump signed orders which impose 25 percent and 10 percent tariffs on steel and aluminum, respectively. The decision created perceptions of a downturn in global trade.
After Trump’s move, China struck back with tariffs between 15 percent and 25 percent on 128 U.S. goods, including fresh and dried fruit, wine, pork, aluminium.–AA

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