Potential effects of higher U.S.-China tariffs on economic growth

PShould the trade war intensify further, the OECD estimates that world GDP and trade could be 1.6 percent lower as a result.

Current tariffs rise to 25%

Tariffs extended to rest of USA-China trade

Tariffs plus higher global risk premia

World GDP

USA GDP

China GDP

0.0

-0.2

-0.4

-0.6

-0.8

-1.0

-1.2 percent

Current tariffs rise to 25%

Tariffs extended to rest of USA-China trade

Tariffs plus higher global risk premia

World GDP

USA GDP

China GDP

0.0

-0.2

-0.4

-0.6

-0.8

-1.0

-1.2 percent

Current tariffs rise to 25%

Tariffs extended to rest of

USA-China trade

Tariffs plus higher global

risk premia

World GDP

USA GDP

China GDP

0.0

-0.2

-0.4

-0.6

-0.8

-1.0

-1.2 percent