US China Tariffs Update – September 2018
Recent tariff announcements are a modest negative for growth in US and China although Chinese policy will look to offset the impact.
Overview:
- Recent tariff announcements are a modest negative for growth in US and China although Chinese policy will look to offset the impact.
- If markets remain calm and the tariff war does not escalate further, particularly to other countries, the impact should be contained.
- US-China tariffs are a negative for the AUD but threatened future actions are largely already priced in.
- For interest rates, as we expect a modest economic impact we have not changed our forecasts – we still see the US Federal Reserve lifting their funds rate further and in time the RBA following with a higher cash rate – there are both upside and downside risks to our rates forecasts.
For further details please see the attached document:
About the Author
NAB’s Group Economics consists of a leading team of economists who provide accurate, timely and relevant updates on domestic, international and industrial economic trends.
Headed up by the Group Chief Economist, Alan Oster, the team is comprised of three distinct departments:
- Australian economics and commodities
- International economics
- Industry economics
The team publish a wealth of content including reports, surveys, forecasts and indexes.
