Tariffs could double US' trade losses

US President Donald Trump's tariffs are based on flawed doctrines, which could penalize the US' economy as much as the trade deficits.

On Friday, Trump threatened to impose tariffs on $267 billion worth of Chinese goods, on top of the additional tariffs on $200 billion of Chinese imports that he said could take effect in a matter of days.

If the tariff stakes increase to $500 billion, it could reduce China's GDP by 1 percent. But for the United States, whose economy is more vulnerable than that of China, the GDP reduction could be 2 percent. In dollar terms, the consequent tariff damage could be even higher than the current US trade deficit with China and thus cause double the damage.