What if US imposes a 60% tariff on Chinese imports?

The US and Europe have recently announced big tariffs on targeted Chinese products such as electric vehicles, but the impact on Chinese GDP should be limited. However, a move by the US to impose a flat 60% tariff on Chinese imports, as proposed by former US president and presidential candidate Donald Trump, could reduce China’s growth significantly. The direct impact of such tariffs could be to knock over 1% off Chinese GDP. They could also hurt Chinese firms' investment plans and lead to a significant depreciation of the renminbi.

China could respond by significantly ramping up policy support. It could also impose retaliatory tariffs on imports from US, limit some key exports to that country or sell US assets.