China Likely to Respond in Restrained Manner After Trump's Tariff -- Market Talk

Dow Jones16:26

0826 GMT - China will likely respond to President Trump's move of imposing an additional 10% tariff on the country, says Commerzbank Research senior economist Tommy Wu in a note. However, there is a possibility that China will respond in a restrained manner and avoid setting off a tit-for-tat trade war with the U.S. for now, he writes. This comes at a time when China's leadership urgently needs to focus on its domestic economic problems, Wu adds. China said it would challenge Trump's move at the World Trade Organization and take other countermeasures, he notes, adding that China didn't specify what measures will be taken nor explicitly threaten retaliatory tariffs, Wu adds. "The official statement also left open the door for talks between Washington and Beijing," he says.(amanda.lee@wsj.com)

(END) Dow Jones Newswires

February 03, 2025 03:26 ET (08:26 GMT)

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