<Research Report>CICC: US First Extra Tariffs on China To Slow Overseas CN Non-financials Profit Rise to 14%
CICC said China and the US are approaching a stage where the implementation of their announced tariff lists and amounts takes place.
With effect from 6 July, the US' additional tariffs on US$34 billion Chinese imports may be in force.
The research house said the development of China-US trade frictions can have three scenarios.
Scenario 1: China and the US will impose extra 25% tariffs on US$50 billion goods of each other. By estimates, CICC said Chinese A-share/ overseas non-financial companies will see around 10%/ 14% decline in 12-month profit growth rate.
Scenario 2: the US will slap additional 10% tariffs on US$200 billion goods on the basis of scenario 1.
Scenario 3: the US will slap additional 10% tariffs on US$200 billion goods on the basis of scenario 2.
Under scenario 2 and 3, the abovementioned profit growth rate will decelerate to 6%/ 8% and 2%/ 1%.
Source: AAStocks Financial News