Tuesday, February 18th, 2025

Chinese economy is now very weak to face tariffs: Moody’s




Moody’s Analytics stated that China’s economy is “around this time” in a very weak position and it would be “quite difficult” to face a barrage of US tariff.

Moody’s Analytics published a report after the announcement of US President Donald Trump on tariff hike for goods from China, Mexico and Canada.

Trump, who recently took over, announced the tariff hike for goods from China, Mexico and Canada over the weekend, as promised during his/her campaign trail.

New tariffs, which will be effective from Tuesday, add additional 10 percent to the tariffs on Chinese goods, send the effective tariff rate to about 20 percent, when according to the report of the rating agency Moody, some for the tariff on some Chinese trade already on the Chinese trade Accounting.

Canada and Mexico announced a plan to retaliate with their own tariffs. China has not yet indicated such a step.

In the report, Harry Murphy Cruz, head of China, head of Moody’s Analytics Harry Murphy Kruz said, “Canada and Mexico announced a plan to retaliate with their own tariffs, China’s reaction has become more silent.”

“After all, China will avoid counterfeit action. In the first term of Trump, no one benefited from the tight-for-tat trade war; This caused more expensive and obstruction to trade in both countries. Making the case worse, China’s economy is in a very weak position this time; The report said that it would be very difficult to face a barrage of tariffs.

According to Moody’s, China is watching to spread tension with the US.

At the end of January, Vice Premier Ding Xuexiang told the World Economic Forum in Davos that according to the China report, in a clear context for a high trade surplus with the US, in a clear context for the high trade surplus, in a compete Was picking up imports.

China has a large trade surplus with the US.



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