China's Tariff Pain Is Likely To Permeate April Data Ahead Of Trade Talks
Source: SeekingAlpha
2025-05-09 07:30:00 ET
Summary
- April is likely to be the month when the full impact of US tariffs on China’s economy begins to come into view.
- Key indicators to watch include trade and manufacturing, while consumption offers insight on whether domestic demand can pick up the slack.
- As expected, the trade war sent the manufacturing PMI back into contraction.
China and US talks set to begin as test of endurance continues
After several weeks of jostling for a better negotiating position, China and the US are set to begin trade talks this week. Both China and the US had been waiting for the other party to make a first conciliatory move. In the end, it looks like some softening from both sides will allow for talks to begin. Given the high level of urgency, we think initial talks to de-escalate things could see relatively faster progress. But tariff levels are likely to remain high even if some early de-escalation is agreed upon, and the overall process will likely be lengthy and difficult....
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China's Tariff Pain Is Likely To Permeate April Data Ahead Of Trade Talks
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