By Hannah Miao

The roughly 100% U.S. tariff on Chinese goods set to go into effect Wednesday would reduce the growth of China's economy by some 2.4 percentage points, according to Goldman Sachs. Beijing has set a growth target of 5% for this year. Goldman is forecasting 4.5% growth, while noting downward risks to its expectations.

Goldman says the effect of U.S. tariffs isn't linear because in some cases China is the principal or only source of a product, so it would be hard for Americans to find alternatives. For roughly a third of products imported from China, the U.S. relies on China for more than 70% of its supply, the bank says. The analysis suggests that even if President Trump goes higher with his tariffs, the further damage to the Chinese economy would be limited, though the pressure so far is significant.

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April 08, 2025 23:33 ET (03:33 GMT)

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