According to Morgan Stanley, tariffs imposed on China for China for the president of the United States, Donald Trump, have increased concerns about jobs, income growth and investment losses among homes in the second largest economy in the world, according to Morgan Stanley.
A total of 44 percent of consumers fear that they or their relatives can lose their jobs, according to a survey conducted last week by the United States bank immediately after the last round of tariff climb between Beijing and Washington. That marked the highest level since the survey was launched in 2020. About 39 percent of respondents said they were concerned about the Discard due to US tariffs that a year ago.
Trump has hit China with tariffs of 145 percent in most goods since he assumed office, which led Beijing to retaliate and threatening to eliminate most of the trade between the largest economies in the world. Now, the fate of the global economy and financial markets depends on whether the United States and China can find a way to avoid prolonged commercial war.
Meanwhile, the confidence of national consumers in China’s economy fell to the lowest level since 2022, when the nation increased the discretion of the strict policies of Beijing.
Morgan Stanley said he surveyed 2,034 people in level 1-4 cities in the country during the April 8 to 11 period.
Earlier on Wednesday, China reported that Hhan’s stronger retail sales for March, suggested that commercial tensions had not yet appeared at that time.
The Morgan Stanley survey also showed that the prospects for spending deteriorated to the weakest since the reopening of China of Covid closures, the strategists led by Lillian Lou and Robin Xing wrote in a note about the survey on Wednesday. Only 23 percent of respondents expect to spend more the next quarter, 8 percentage points lower than three months before.
In addition, 40 percent of consumers surveyed were concerned about salary cuts, and expected their income to increase by 5.7 percent in the next 12 months, 50 lower basic points than the last survey, in December.
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Posted on April 17, 2025