The report titled, “The Impact of US-China Trade Tensions” said that if the dispute continues, it will “subtract about 0.3 percent of global GDP in the short term”.
The ongoing tension have damaged the economies of both countries, reducing overall trade and hurting companies on both sides.
Calling it a loss for consumers in both the nations, the report warned that if the tariffs are escalated, consumer goods will become less affordable, harming low-income households.
The report further stated that the tariff revenue collected has been borne almost entirely by US importers. It also revealed that the tariffs have reduced trade between the U.S. and China, but the bilateral trae deficit remains broadly unchanged.