Exports to the United States from Australia’s largest trading partner, China have now been hit by tariffs of 104% since Donald Trump came to office. Head of China economics at Capital Economics, Julian Evans-Pritchard says China’s $500 billion export trade to the US, which accounts for around 15 per cent of China’s exports won’t stop immediately, but could see a significant reduction over the next few years. He says the expected hit to China’s GDP could total about 1 per cent, depending on how China responds to support its economy. He says Australia’s economy might fare relatively well despite the tariff hit to its greatest trading partner if Beijing tries to offset export weakness with increased infrastructure spending. Mr Evans-Pritchard says Australia’s main concern isn’t the impact on China, but the more broader negative business environment that’s unfolding on financial markets.
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