In a detailed evaluation of President Donald Trump’s tariff policies, Rep. Warren Davidson from Ohio shared his perspective on the administration’s ongoing conflicts with federal judges on ‘The Bottom Line.’ During the first quarter of 2025, China’s economic growth surpassed expectations, but the future outlook appears bleak as the nation prepares for significant U.S. tariffs.
According to recent data, China’s GDP increased by 5.4% in the first quarter compared to the previous year, exceeding the 5.1% rise anticipated by analysts in a Reuters survey. Retail sales, an essential measure of consumption, rose nearly 6% year-on-year in March, following a 4% increase in January-February. Additionally, factory output growth accelerated to 7.7% from 5.9% in the initial two months, both surpassing analysts’ predictions.
However, these positive figures were recorded before President Trump heightened tariffs on Chinese products, leading to retaliatory tariffs from Beijing on U.S. imports. This escalation in trade tensions between the two largest economies has raised fears of a potential global recession.
Market analysts anticipate a significant reversal in China’s export growth, which surged in March as factories rushed shipments ahead of the new U.S. tariffs. As other nations also experience the impact of U.S. tariffs, China has been targeted with the most substantial duties.
The preceding week, President Trump increased tariffs on China to 145%, resulting in Beijing raising levies on U.S. goods to 125% and criticizing the U.S. trade actions as trivial. On a quarterly basis, China’s economy grew by 1.2% in the first quarter, down from 1.6% in the previous quarter.
For the full year 2025, China’s economy is projected to grow at a modest 4.5%, according to the Reuters poll, a slower pace than last year’s 5.0% and below the official target of around 5.0%. Chinese policymakers have consistently stated that the nation has sufficient resources and tools to support the economy, with Premier Li Qiang pledging additional measures this month.
China’s top priority this year is to boost consumption to mitigate the effects of the Trump administration’s tariffs on its trade sector. The Politburo, a key decision-making body of the ruling Communist Party, is scheduled to convene later this month to outline its policy plans for the upcoming months.
This report included contributions from Reuters.
