From CNBC: 2025-04-08 23:07:00

Trucks line up at the container terminal in Longtan Port in China on April 8, 2025, amid escalating trade tensions with the U.S. Citi and Natixis cut China’s GDP forecast to 4.2% due to increased tariffs. Morgan Stanley and Goldman Sachs warn of downside risks. Beijing signals potential economic stimulus measures.

U.S. President Trump announced an additional 50% tariff on Chinese goods entering the U.S. starting Wednesday. New U.S. tariffs on Chinese products in 2025 have reached 104%. Goldman Sachs analysts say initial tariff increases could reduce Chinese GDP by 1.5 percentage points.

Nomura expects China’s exports to drop by 2% this year, worse than previous expectations. The firm’s Chief China Economist Ting Lu maintains a 2025 GDP forecast of 4.5%. China considers cutting interest rates or increasing fiscal spending to boost growth. Beijing sees strategic gains in strong retaliation against U.S. tariffs.

Read more: Wall Street starts to cut China GDP forecasts on U.S. trade tensions