By The Biden administration’s 25% tariffs on $370B of Chinese goods directly shaved 0.8% off China’s Q1 GDP growth, according to Morgan Stanley estimates. Sector-specific damage:
• Electronics: $42B in canceled orders
• EV batteries: 15% production cuts
• Solar panels: Inventory glut at 9-month high
“These tariffs hit China’s modern export pillars,” said TS Lombard’s Rory Green.
The collateral damage:
✓ 1.2 million manufacturing jobs at risk
✓ Guangdong province growth halved to 2.3%
✓ Yuan depreciation to 7.24/USD
Beijing’s countermeasures:
→ $6B subsidy package for affected exporters
→ Accelerated ASEAN trade diversification
→ Rare earth export controls on tech firms