China Minimizes Trump Tariffs' Impact on Economic Rebound

By Kevin Yao

BEIJING (The News Pulse) - Chinese officials attempted to alleviate worries about the extensive U.S. tariffs potentially hindering attempts to bolster a weak economic rebound on Monday. Despite this effort, experts caution that these significant duties increase the likelihood of a considerable decline in growth.

President Donald Trump's worldwide trade conflict has unsettled financial markets and sparked concerns about an economic downturn, especially due to reciprocal tariff increases between the globe’s two largest economies, which pose a risk to disrupting supply chains and various sectors.

Zhao Chenxin, who serves as the deputy director of the National Development and Reform Commission (NDRC), China’s top planning agency, expressed his complete confidence that the nation will meet its projected economic growth target of roughly 5% for the year 2025.

Zhao did not announce any fresh support or stimulus initiatives, but mentioned that the NDRC would introduce new policies during the second quarter based on the prevailing economic circumstances at that time.

Accomplishments during the initial three months have established a strong base for the year’s economic growth," stated Zhao. "Regardless of shifts in the global landscape, we will steadfastly pursue our developmental objectives, keep a clear strategic vision, and remain dedicated to managing our affairs independently.

The statement stood in stark contrast to the widely held belief amongst experts observing China, who thought that the escalating trade conflict with the U.S. would considerably affect economic expansion in the globe’s second-largest market.

The International Monetary Fund, Goldman Sachs and UBS all recently revised down their economic growth forecasts for China over 2025 and into 2026, citing the impact of Trump's tariffs - none of them expect the economy to hit Beijing's official growth target.

Washington has imposed 145% tariffs on most Chinese products as part of Trump’s “Liberation Day” move on April 2, which led Beijing to respond with 125% duties on U.S. imports. This action essentially resulted in a mutual trade embargo between the two countries’ goods.

The Chinese leader, President Xi Jinping, has visited Southeast Asia, and other officials have stepped up their diplomatic efforts to bring nations together in opposition to Mr. Trump’s tariffs. Additionally, China has warned of potential countermeasures against cities supporting the U.S. stance.

The trade conflict arises during an especially challenging period for China's economy, as it teeters on the brink of deflation because of slow income growth and a lengthy real estate downturn.

Experts anticipate that Beijing will provide additional monetary and fiscal support in the upcoming months to bolster economic growth.

Alongside Zhao, the deputy governor of the People's Bank of China, Zou Lan stated that the PBOC will implement additional reductions in interest rates as well as decrease the reserves that commercial banks are required to maintain. He also reiterated their dedication to ensuring the stability of the yuan.

The People's Bank of China last reduced its key policy rate in September, decreasing its 7-day reverse repo rate by 20 basis points.

(Reported by Kevin Yao; Written by Joe Cash; Edited by Kim Coghill, Jacqueline Wong, and Shri Navaratnam)