30
Jul
By Lukas Boeckelmann, Lorenz Emter, Vanessa Gunnella, Karin Klieber and Tajda Spital
With trade tensions between China and the United States reaching new heights, Chinese exports may be redirected to the euro area. In a severe scenario, this additional supply and the accompanying lower import prices could bring down euro area inflation by as much as 0.15 percentage points.
The United States has imposed tariffs on many trading partners, with China being hit particularly hard. Hamstrung by higher US tariffs, Chinese...