US President Donald Trump has imposed a 10% tariff on Chinese goods, citing Beijing's failure to curb fentanyl flow into the US. This move, coupled with existing tariffs, is projected to significantly impact China's economic growth, fueling calls for more robust stimulus measures. China, while vowing countermeasures, has yet to disclose specific retaliatory actions.
The blanket 10% tariffs will be levied on top of the existing tariffs of up to 25% that Trump had imposed on Chinese goods during his first presidency.
"We are not revising our 2025 baseline forecast of 4.0% GDP growth for China," she said, factoring in additional U.S. tariffs of 60% on a quarter of China's exports and greater policy support from Beijing.Chinese yuan plunged 0.60% to 7.3631 against the greenback in offshore trading Monday, before trimming losses, according to LSEG data. The offshore yuan has lost 3.7% since Trump's presidential victory in early November.
Since last year, the central bank has been capping the exchange rate guidance at under 7.20 per dollar, a move seen as a signal of its determination to defend the currency. Policy rooms to maneuver exchange rate depreciation, large-scale trade diversion and reduction in exporters' profit margins have all"diminished significantly," the bank said.
, including interest rate cuts and a five-year fiscal package totaling 10 trillion yuan , some sectors have seen economic activity stabilize.set the annual GDP growth target 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, hence delaying the announcement of any concrete retaliation until they return to work on Feb. 5.
Economics CHINA TARIFFS US ECONOMY FENTANYL TRADE WAR STIMULUS
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