Trump Tarifs Cold Create a New Challenge for Chinese Policymakers: A Growth Rate Below 5%

The Imminent Us Tariffs Are Likely to Deal a Significant Blow to China’s Alarady-Faltering Economy, Reinforcing Calls for more for more for due to forceful stimulus measures to Bolster the Country’s Growth.

Us President Donald Trump on Saturday Followed anyl into the US

The blanket 10% tarifs will be levied on top of The existing tarifs of up to 25% That Trump Had Imposed on Chinese Goods during his first presidency.

The additional 10% tariffs would reduce China’s real gdp growth by 50 basis points this year, economists at goldman sadd in a report monday.

The Investment Bank Expects China’s Real GDP growth to 4.5% this year While Domestic Price Growth Remains Under Pressure Due to Weak Demand, with Consumer Inflation Expected to RISE JUSTED to RISE JUSTED to RISE JUSTED to RESE JUK DEMAND, with 0.4% in 2025.

The consumer price inflation barely grew last year, Rising 0.2% year on yearHigher Us Tariffs Could Further Strain Domestic Prisis as External Demand for Chinese Goods Weaken.

As Trump Started His Second Term, He Ordered His Administration to Investigate Beijing’s Compliance with a Trade Deal Struck DURINT PRESIDENCY IN 2020. Y April 1, potentially setting the stage for further tarif actions , Economists said.

“Clearly the 10% Tariff Hike Came in Quickly and Lower, but there remains a lot of uncertainty on the timing and scale of additional tarifs on china,” Wang tao, chinna ecoly on Monday.

“We are not revising our 2025 baseline forecast of 4.0% GDP growth for china,” She said, factoring in additional us tarifs of 60% on a Quarter of China’s Exports and Greater POLCY POLICY POLICY POLICY SAPPORT FROM POLOMESTS

As an external trade war looms, Economists Expect more fiscal Spending to Offset China’s Deflationary Pressures and Boost Consumer Spending.

While the economy hit the growth target of 5.0% last year, it struggled to emerge from a real estate collapse and weak consumer and weak consumer and weak consumer and business confidence, Leaveing ​​Confidence, Leaving Exports as AS AS AS AS ACY DRIVER OF GROWTH. Even in 2023, Exports Contributed Almost 20% of the Country’s GDPAccording to World Bank Data.

In 2024, China’s expenses to the US grew By 4.9% to $ 524.6 billionAccounting for Nearly 15% of Its Total Exports. China’s’S Trade Surplus with Us Stood at Over $ 360 Billion Last YearCompared with $ 336 billion in 2023, according to the official customs data.

Since Beijing Introduced A Flurry of Stimulus Measures Late Last YearIncluding Interest Rate Cuts and a five-Year Fiscal Package Totaling 10 trillion yuan ($ 1.4 trillion), some sectors have seen Economic Activity Stabilze.

For this year, The government has pledged to make Boosting Consumption a Top Priority And expanded a consumer Goods Trade-in Program.

Markets are monitoring Beijing’s Next Policy Steps as Trade Tensions With the US are expected to intensify. The top leadership is anticipated to unveil further stimulus measures and Set the annual gdp growth target At the annual parliamentary meetings in March.

“We Continue to Expect PolicyMakers to Announces more Expanyary Fiscal Policies … With the augmented fiscal deficit widening by 2.6 percented point of GDP in 2025,” Goldman Sachs Saconomist SAID

China’s Commerce Ministry Said Sunday that it would challenge trump’s tariff decision At the World Trade Organization, Condemning The Sweeping Tarifs as a “Serious Violation of International Trade Rules.”

While Vowing to “Take corresponding countermeasures to firmly safeguard its rights and interests,” China’s statement, however, stopped short of announcing on Specific Plans For Tariff

Filing a lawsuit with the wto has larger been a symbolic move that beijing has taken against tariffs on chinese-made electric vehicles by the european union turn. In recent weeks, chinese officials have reiterated that beijing believes There is no winner in a trade war,

Beijing’s Response So far has appeared “Mild to Start,” Said Lynn Song, Chief Economist at LNG, but he cautioned some chinese policymakers may still be on Holiday Retaliation until they return to work on Feb. 5.

“If pushed into a corner, china’s retaliation could be strongeer than what most expect S, and measures targeted at American conglomerates with large relief on the chinese market.

Trump’s Saturday Executive Orders Included Additional 25% Tarifs on Goods from Mexico, One of China’s Main’s Main Export Reroating Channels.

That May Prompt China to Shift Exports to Asean and Latin American Countries, While Boosting Trade Ties with these Nations to Help Offset “a More Protectionist Us,” Song Added.