China and Europe are bracing for economic headwinds following the latest tariff measures imposed by the United States. According to Goldman Sachs, these new trade barriers could dampen growth in both regions, while the US economy is expected to feel only a modest slowdown.
The US recently announced a 10% tariff on all Chinese imports, escalating trade tensions between the world’s two largest economies. Additionally, a 25% import tax on steel and aluminum is set to take effect on March 12, though Mexico and Canada have been granted a temporary reprieve, delaying their tariff implementation by a month.
Goldman Sachs economist Joseph Briggs noted that while the US economy could experience a slight dip in growth—potentially slowing by around 0.25%—other economic policies under the Trump administration may offset the impact, keeping overall GDP relatively stable.
Financial markets reacted cautiously to the news. The S&P 500 ended nearly unchanged, while the Nasdaq Composite edged up by 0.4%. Meanwhile, the Dow Jones Industrial Average slipped by 0.4% as investors balanced tariff concerns with rising inflation data from the US.