J.P. Morgan sees lower U.S. GDP, higher inflation due to China tariffs

NEW YORK (Reuters) – If the United States soon ends up imposing tariffs on all Chinese imports, the nation’s economic growth would be reduced by up to 0.2 percentage point by the end of 2019, while domestic core inflation would rise by 0.2-0.3 point, J.P. Morgan economists said on Friday.

The tariffs would trim the government’s budget gap to $900 billion from $1 trillion in fiscal 2019, they said in a research note.

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