US Voters Narrowly Support Trump’s Tariff Pitch, Poll Finds

 Republican presidential nominee former President Donald Trump arrives at Harry Reid International Airport to board a plane after a campaign trip, Saturday, Sept.14, 2024, in Las Vegas. (AP)
Republican presidential nominee former President Donald Trump arrives at Harry Reid International Airport to board a plane after a campaign trip, Saturday, Sept.14, 2024, in Las Vegas. (AP)
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US Voters Narrowly Support Trump’s Tariff Pitch, Poll Finds

 Republican presidential nominee former President Donald Trump arrives at Harry Reid International Airport to board a plane after a campaign trip, Saturday, Sept.14, 2024, in Las Vegas. (AP)
Republican presidential nominee former President Donald Trump arrives at Harry Reid International Airport to board a plane after a campaign trip, Saturday, Sept.14, 2024, in Las Vegas. (AP)

Donald Trump's campaign vow to increase tariffs on imported goods, particularly from China, has the support of a narrow majority of US voters, illustrating his economic advantage over rival Vice President Kamala Harris, a new Reuters/Ipsos poll shows.

The Republican former president and his Democratic opponent have both vowed to pursue tax cuts if they win the Nov. 5 election. But voters also credit Trump with being more likely to lower the $35 trillion national debt -- even though independent economic forecasters say his proposals would have the opposite effect.

Some 56% of registered voters in the Sept. 11-12 poll said they were more likely to support a candidate backing a new 10% tariff, or tax, on all imports, as well as a 60% tariff on imports from China. By comparison, 41% said they were less likely to support a candidate attached to that proposal.

The poll showed Harris with an overall 5-percentage-point lead over Trump nationally, though the US presidential race will largely be decided in about seven battleground states where the race is tighter.

The poll details Trump's strengths on a key issue, the US economy.

"This is what's keeping the election so close," said Karlyn Bowman, a polling expert at the conservative American Enterprise Institute.

Bowman said Trump's advantage flows from a perception the economy did well during his 2017-2021 administration, and from his success convincing voters US economic problems stemmed from underhanded economic competition from other countries, notably China.

The poll found one in three Democrats said they were more likely to vote for a candidate backing higher tariffs and steep levies on Chinese goods, compared with two-thirds who said they were less likely to do so. Independent voters mirrored the wider electorate.

Until the COVID-19 pandemic ravaged the global economy in 2020, the US economy by many measures performed well during the Trump administration, boosted by tax cuts for consumers. Unemployment was at its lowest in decades, although the national debt was rising and would explode during the pandemic.

This year, Trump has promised an array of tax cuts on the campaign trail, including ending income tax on tipped income - a proposal Harris also supports. On Thursday, he vowed to end taxes on overtime pay.

Seventy percent of registered voters supported the idea of exempting tips from taxes.

Trump called himself a "tariff man" during his presidency as he slapped levies on Chinese imports. Economists are wary of the idea, including at Wall Street bank Goldman Sachs, which estimates Trump's tariffs and other policies would slow the economy.

Harris mentioned Goldman Sachs' assessment in Tuesday's presidential debate and has noted that many independent economists believe Trump's policies would add to the national debt.

But the poll found that 37% of US voters see Trump as more likely to focus on reducing the debt, compared with 30% who picked Harris. Another 30% said neither would do so.

Several prominent budget forecasters see Trump's tax proposals adding at least $3 trillion to federal deficits over a decade, while the same forecasters see Harris' plans adding less than $2 trillion or possibly reducing the debt.

Among voters polled, 47% said Trump was more likely to prioritize fostering a good climate for business, compared with 37% who picked Harris.

Harris, however, had a marginal 1-percentage-point advantage - 43% to 42% - when voters were asked who will seek to create "an economic climate that is good for me and my family."

Voters also said Harris was more likely to prioritize getting people affordable healthcare and building bridges and roads.

Trump had an advantage on inflation, which surged under Biden in 2021 and 2022. Some 43% of voters in the poll said Trump would be more likely to "lower prices for everyday things like groceries and gas," compared with 36% who picked Harris.

The Reuters/Ipsos poll gathered responses online from 1,405 registered voters, with a margin of error of about 3 percentage points.



US Tariffs Could Slow China's Growth to 4.5% in 2025

People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)
People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)
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US Tariffs Could Slow China's Growth to 4.5% in 2025

People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)
People walk past a billboard which reads I love Beijing, Happy New Year at 798 art district, ahead of the upcoming Lunar New Year, marking the Year of the Snake, in Beijing on January 14, 2025. (Photo by JADE GAO / AFP)

China's economic growth is likely to slow to 4.5% in 2025 and cool further to 4.2% in 2026, a Reuters poll showed, with policymakers poised to roll out fresh stimulus measures to soften the blow from impending US tariff hikes.

Gross domestic product (GDP) likely grew 4.9% in 2024 - largely meeting the government's annual growth target of around 5%, helped by stimulus measures and strong exports, according to the median forecasts of 64 economists polled by Reuters.

But the world's second-largest economy faces heightened trade tensions with the United States as President-elect Donald Trump, who has proposed hefty tariffs on Chinese goods, is set to return to the White House next week.

“Potential US tariff hikes are the biggest headwind for China's growth this year, and could affect exports, corporate capex and household consumption,” analysts at UBS said in a note.

“We (also) foresee property activity continuing to fall in 2025, though with a smaller drag on growth.”

Growth likely improved to 5.0% in the fourth quarter from a year earlier, quickening from the third-quarter's 4.6% pace as a flurry of support measures began to kick in, the poll showed.

On a quarterly basis, the economy is forecast to grow 1.6% in the fourth quarter, compared with 0.9% in July-September, the poll showed.

The government is due to release fourth-quarter and full-year GDP data, along with December activity data, on Friday.

China's economy has struggled for traction since a post-pandemic rebound quickly fizzled out, with a protracted property crisis, weak demand and high local government debt levels weighing heavily on activity, souring both business and consumer confidence.

Policymakers have unveiled a blitz of stimulus measures since September, including cuts in interest rates and banks' reserve requirements ratios (RRR) and a 10 trillion yuan ($1.36 trillion) municipal debt package.

They have also expanded a trade-in scheme for consumer goods such as appliances and autos, helping to revive retail sales.

Analysts expect more stimulus to be rolled out this year, but say the scope and size of China's moves may depend on how quickly and aggressively Trump implements tariffs or other punitive measures.

More stimulus on the cards

At an agenda-setting meeting in December, Chinese leaders pledged to increase the budget deficit, issue more debt and loosen monetary policy to support economic growth in 2025.

Leaders have agreed to maintain an annual growth target of around 5% for this year, backed by a record high budget deficit ratio of 4% and 3 trillion yuan in special treasury bonds, Reuters has reported, citing sources.

The government is expected to unveil growth targets and stimulus plans during the annual parliament meeting in March.

Faced with mounting economic risks and deflationary pressures, top leaders in December ditched their 14-year-old “prudent” monetary policy stance for a “moderately loose” posture.

China's central bank is expected to deploy its most aggressive monetary tactics in a decade this year as it tries to revive the economy, but in doing so it risks quickly exhausting its firepower. It has already had to repeatedly shore up its defense of the yuan currency as downward pressure pushes it to 16-month lows.

Analysts polled by Reuters expected the central bank to cut the seven-day reverse repo rate, its key policy rate, by 10 basis points in the first quarter, leading to a same cut in the one-year loan prime rate (LPR) - the benchmark lending rate.

The PBOC may also cut the weighted average reserve requirement ratio (RRR) for banks by at least 25 basis points in the first quarter, the poll showed, after two cuts in 2024.

Consumer inflation will likely pick up to 0.8% in 2025 from 0.2% in 2024, and rise further to 1.4% in 2026, the poll showed.