A study by the US Chamber of Commerce shows how the deterioration in the trade dispute between the world’s two largest economies, China and the United States, will drastically affect the American economy.
“Escalation of bilateral tariffs results in lower GDP, lower employment, lower investment, and lower trade flows for the United States,” said the study, which was conducted jointly by the commerce chamber and research firm Rhodium Group.
It found that tariff measures would cost the US GDP from $45 billion to $60 billion in the first year following the imposition. The figure will grow to $89 – $125 billion annually, five years later.
The US economy stands to lose $1 trillion of its baseline potential within ten years of tariff implementation, the report concluded. (RT)