May 1, 2025 8:30 pm
Full News

China’s Economic Outlook Dims Amid Escalating U.S. Trade Tensions

April 29, 2025 

China’s economy faces mounting challenges as escalating trade tensions with the United States threaten to derail its post-pandemic recovery. While the nation reported a robust 5.4% GDP growth in the first quarter of 2025, surpassing expectations, analysts warn that the momentum may not be sustainable in the face of new U.S. tariffs and retaliatory measures.

Trade War Intensifies

On April 2, the U.S. administration imposed sweeping tariffs, including a 10% baseline rate on imports from most countries and significantly higher rates—up to 245%—on certain Chinese goods. In response, China retaliated with 125% levies on U.S. imports, effectively imposing a trade embargo on each other’s goods.  

These measures have significantly disrupted global supply chains, with cargo shipments from China to the U.S. plummeting by up to 60%.

Economic Indicators and Forecasts

Despite the strong first-quarter performance, the International Monetary Fund (IMF) has downgraded China’s growth forecast to 4.0% for both this year and next, citing threats from U.S. tariffs and trade policy uncertainty. 

The IMF also warns that the global economy is projected to slow to 2.8% in 2025, 0.5 percentage points lower than earlier estimates, with only a modest rebound to 3% in 2026. 

Corporate Impact and Consumer Prices

Major companies are already feeling the pinch. Retailers such as Shein, Target, and Walmart have announced or are considering price increases due to the tariffs. Automakers like Ford and Volkswagen have raised vehicle prices in response to the 25% tariff on car imports. 

The Tax Foundation estimates that the tariffs amount to an average tax increase of nearly $1,300 per U.S. household in 2025, reducing after-tax incomes by 1.2% on average. 

Policy Responses and Outlook

In response to the economic pressures, President Xi Jinping has unveiled a comprehensive plan to bolster the Chinese economy. Key measures include boosting unemployment benefits, increasing incomes for low and middle-income groups, enhancing financing support for enterprises, and stimulating domestic demand.

However, the effectiveness of these measures remains to be seen, as the trade war continues to cast a long shadow over China’s economic prospects.

As the situation evolves, both nations face mounting pressure to find a resolution to the trade dispute, with global economic stability hanging in the balance.

Related News
The Unethical Influence of Donation Connection: Dissecting the Yunus-Clinton Political Nexus
Over 100 Killed in Sudanese Military Airstrike
Russell Crowe Replaces Mads Mikkelsen in Billion Dollar Spy
EU Vows Firm Response to US Tariffs on Steel and Aluminium
Albania to Establish Vatican-Style Sovereign State for Bektashi Order in Tirana
Guardiola vows to end relegation form
Related Posts
US Expresses Support for India’s Right to Self-Defense
Heartbreak at Border: Mother Forced to Leave Breastfeeding Child Behind Amid India-Pakistan Tensions
UN Experts Demand Immediate Action on Detention of Bangladeshi Journalists Farzana Rupa and Shakil Ahmed
Tesla Denies Rumors of Searching for Elon Musk’s Replacement
UK and US Launch Joint Airstrikes on Houthi Facilities in Yemen
Jaishankar Expresses Gratitude to South Korean Counterpart for Support Post-Pahalgam Attack
More News

Australian PM Labels Melbourne Synagogue Fire as Suspected Terrorism

Australian Prime Minister Anthony Albanese described the suspected arson attack on a Melbourne synagogue as an act of terrorism, emphasizing its intent to instill fear within the community. Speaking at a press conference in Perth on Dec. 8, Mr. Albanese said, “The atrocities that occurred at the synagogue in Melbourne clearly were designed to create […]

Japan’s Worst Wildfire in Half a Century

The coastal city of Ofunato in northern Japan is battling the worst wildfire the country has seen in half a century. According to the Japan Times, not since the last three decades has Japan witnessed such a massive blaze. So far, the fire has claimed one life. Disaster management officials reported that the wildfire has […]

Indonesia’s Mount Lewotobi Erupts Again, Launches Tower of Ash Into the Sky

Mount Lewotobi Laki-Laki, a volcano located on the island of Flores in eastern Indonesia, erupted once again today, sending a massive column of ash nearly 9 kilometers into the sky. This eruption comes just days after a series of blasts from the volcano killed nine people and prompted the evacuation of thousands of residents. The […]

Mahfuj Alam, Aide to Dr. Yunus, Sparks Controversy with Call to Annex Indian Territories

Bangladesh Political Aide Sparks Controversy Over Facebook Post Advocating Annexation of Indian Territories Mahfuj Alam, special aide to Dr. Muhammad Yunus and advisor to the Interim Government, triggered regional tensions on Tuesday morning with a controversial Facebook post suggesting the annexation of India’s eastern and northeastern territories. In the post, Alam accused India of pursuing […]

Two bodies found in plane wheels in US

In December last year, a body was found in a hole in the wheel of an aircraft that landed in Hawaii. Two bodies have been found in the wheels of a New York Airlines JetBlue plane after landing at Fort Lauderdale International Airport in Florida. The airline announced the news on Tuesday. The same thing […]

Trump Demands Free Passage for U.S. Ships Through Panama and Suez Canals

Since returning to the White House in January, U.S. President Donald Trump has been pressuring for the removal of Chinese port operators near the Panama Canal. On Saturday, through a post on his social media platform Truth Social, he shifted attention to the Suez Canal as well. Trump demanded that U.S. military and commercial ships […]

Israel Launches First Airstrike on Beirut After Ceasefire Agreement with Lebanon

Israel has launched airstrikes on Lebanon, targeting the southern suburbs of Beirut on Friday, March 28. The attack comes after months of ceasefire, putting the agreement at risk, according to a report by Reuters. The Israeli military claims the airstrike was in response to a rocket attack from Lebanon. Israeli Prime Minister Benjamin Netanyahu stated […]

The Fall of Awami League: A Political Reassessment

The fall of the Awami League government, which had held power for 16 years under the leadership of Sheikh Hasina, marks a significant shift in Bangladesh’s political landscape. The quota reform movement, which initially galvanized the youth and drew widespread support, ultimately became a focal point for criticism and conspiracy theories. Allegations have surfaced that […]

Italian Prime Minister Giorgia Meloni Meets President-elect Donald Trump in Florida

WEST PALM BEACH, Florida – Italian Prime Minister Giorgia Meloni flew to Florida to meet with President-elect Donald Trump on Saturday, as the key European leader sought to buttress ties with Trump before his inauguration on January 20. Members of Trump’s Mar-a-Lago resort welcomed Meloni with applause after an introduction by the president-elect, according to […]

The United States Wanted to Halt Aid for Rohingya Refugees

The United States had considered stopping food aid for millions of Rohingya refugees in Bangladesh and the general population in Lebanon. In February, an official from the Trump administration sent an email suggesting that aid to the stateless Rohingya and Lebanon should be discontinued as it was not beneficial for the U.S. Peter Marocco, the […]