China is bracing for a significant hit from US President Donald Trump’s latest trade tariffs, which have effectively imposed a 125 percent levy on Chinese goods sold to the US. The country’s economy is expected to take a major blow, with forecasts suggesting a potential GDP contraction of up to 2.4 percent.
Despite growing tensions between the two economies, China remains a significant trading partner for the US, with imports totaling $438.9 billion in 2023. However, Trump’s tariffs are likely to have a disproportionate impact on China’s economy, which is heavily reliant on exports.
China has responded by announcing its own reciprocal tariffs, which have pushed the levy rate on US imports to 84 percent. Beijing has defended its actions as necessary to safeguard its sovereignty, security, and development interests, while also warning of the potential risks of a global trade war.
Analysts predict that China’s economy will struggle to meet its official growth target of 5 percent in 2025, with some forecasting a reduced growth rate of just 4 percent. The government is expected to respond by implementing domestic stimulus measures and boosting ties with trading partners.
However, not all experts are as pessimistic about the outlook for China’s economy. Professor Jayati Ghosh argues that the country is better prepared than most nations to handle the fallout from Trump’s trade policies, citing its ability to intervene in the stock market and implement fiscal expansion measures.
Source: https://www.aljazeera.com/news/2025/4/9/trumps-tariff-war-whats-at-stake-for-chinas-economy