Assessing the potential impact of increased tariffs on Chinese imports, ABN AMRO’s Senior Economist Bill Diviney argues that a 25% tariff imposed on all Chinese imports would boost core inflation by a cumulative 30bp over 2019-20. Key quotes “This impact may seem modest, but it reflects a number of factors: 1) that the impact is likely to be blunted by yuan depreciation versus the US dollar; 2) that core goods has only a 25% share of the core CPI basket (the remainder being services), and 3) that Chinese imports represent around 18% of core goods consumption.” “As with higher wage costs, it is possible that businesses try to absorb these higher prices, particularly if they do not believe the tariffs are permanent and could be revoked once an agreement is reached between the US and China. As such, the impact might be even less than the 30bp indicated.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Breaking: USD/TRY skyrockets to 7-month highs above 6.15 on latest political headlines FX Street 3 years Assessing the potential impact of increased tariffs on Chinese imports, ABN AMRO's Senior Economist Bill Diviney argues that a 25% tariff imposed on all Chinese imports would boost core inflation by a cumulative 30bp over 2019-20. Key quotes "This impact may seem modest, but it reflects a number of factors: 1) that the impact is likely to be blunted by yuan depreciation versus the US dollar; 2) that core goods has only a 25% share of the core CPI basket (the remainder being services), and 3) that Chinese imports represent around 18% of core goods consumption." "As with higher… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
