Trump's Tariffs Could Deliver a Sizable Hit to China's Growth

The video discusses the potential impact of proposed tariffs by the Trump administration, which could significantly affect global economic growth. Economists predict a possible reduction in growth by up to half a percentage point, depending on the scale and nature of the tariffs. The discussion then shifts to China's response, highlighting the country's readiness to use monetary and fiscal measures to mitigate the impact. China's Central Bank, led by Igang, is prepared to support the economy, and there are options for public spending and shifting production to counteract the trade war.

What is the estimated impact on economic growth if tariffs on $250 billion worth of goods are implemented?

• A full percentage point decrease

• A full percentage point increase

• Half a percentage point decrease

• No change in growth

Which economy is primarily discussed as being affected by the new tariffs?

• The world's smallest economy

• The world's largest economy

• The world's second largest economy

• The world's third largest economy

What role does the Central Bank play in China's strategy to counteract tariffs?

• It will impose new tariffs

• It will backstop the economy

• It will reduce public spending

• It will increase taxes

What fiscal measure can China take to support its economy against tariffs?

• Impose new tariffs

• Increase public spending

• Reduce interest rates

• Decrease public spending

What is one of the non-fiscal strategies China can use to counter a trade war?

• Increase interest rates

• Decrease exports

• Shift order books and move production

• Increase tariffs on imports