The leading institution in the financial sector believes that the Chinese government can relax in financial policies in the face of new tariff measures implemented by the US President.
Chinese tariffs
In the assessment, Trump’s tariff applied to China’s Gross Domestic Product growth rate of 2025 may reduce the growth rate by at least 0.7 %. The analysis mentioned that the growth figures were above expectations before the tariff entered into force.
Goldman Sachs: “Before the tariffs, it was more than our growth expectations. Considering the situation, there is the possibility to adjust in monetary policy tools such as guarantee ratio reductions and interest rate cuts.”
USA-China Tariffs
US President, all imported products, an executive decision that brings a general 10 percent tariff, China’s products concerning a total of higher rates of additional tax said. China took steps that increase commercial tension by responding to this with retaliation measures.
Donald Trump: “If China does not withdraw the increase of 34 percent exceeding long -term commercial disruptions, an additional tariff will be applied. In addition, all the planned negotiations with China will be terminated.”
Following this statement, the process continued and today an additional tax on China was increased to 104 %.
The evaluation of the impact of tariffs on the economy leads to the emergence of elements that can guide the strategic moves of both countries. Taxes and retaliation measures taken are seen as a harbinger of a new era in commercial relations.
It is stated that flexible steps can be taken in the field of monetary policy against the envisaged economic contraction. If China seriously takes relaxation steps as Golman Sachs experts predicted, liquidity expansion reduces the pressure on crypto currencies and can prepare the basis for rise.
Analysis indicates that uncertainties that may occur in economic growth and trade relations can lead to fluctuations in global markets. The steps taken by the parties are expected to affect the stability of the markets.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
