Rep. Warren Davidson, a Republican from Ohio, assesses President Donald Trump’s tariff strategies and offers his insights on the ongoing legal disputes with federal judges on the program ‘The Bottom Line.’
China exceeded first-quarter economic growth forecasts; however, the outlook for the rest of 2025 is uncertain as the country anticipates the repercussions of significant U.S. tariffs. Recent statistics show that China’s gross domestic product (GDP) rose by 5.4% from the previous year during the January-March period, surpassing the 5.1% increase forecasted by analysts in a Reuters survey.
In March, retail sales, a vital indicator of consumer spending, increased to just under 6% year-on-year, following a 4% rise in January and February, while industrial production growth accelerated to 7.7% from 5.9% in the first two months. Both figures exceeded analysts’ expectations.
These statistics came before President Donald Trump significantly increased tariffs on Chinese goods, leading Beijing to impose retaliatory duties on U.S. imports amidst an escalating trade conflict between the two largest global economies. This situation is fueling concerns of a potential global recession.
Analysts predict that a surge in China’s March exports, driven by manufacturers expediting shipments to bypass the impending tariffs imposed by Trump, will likely reverse sharply in the upcoming months as the substantial U.S. levies take effect.
While many countries are affected by U.S. tariffs, China has been the primary target of these increased duties. Recently, Trump raised tariffs on China to 145%, prompting China to increase tariffs on U.S. goods to 125% and dismissing U.S. trade actions as “a joke.”
The Chinese economy expanded by 1.2% in the first quarter on a quarterly basis, a slowdown from the 1.6% growth in October-December. For 2025, China’s economy is projected to grow at a modest 4.5% annually, down from last year’s 5.0% pace and below the official target of around 5.0%, according to the Reuters poll.
Policymakers in China have repeatedly stated that there are sufficient resources and tools available to support the economy, with Premier Li Qiang recently pledging to implement additional supportive measures.
Boosting consumption has been prioritized by Beijing this year to mitigate the effects of U.S. tariffs on its trade sector. The Politburo, a primary decision-making entity of the ruling Communist Party, is expected to convene later this month to establish its policy agenda for the forthcoming months.
Reuters contributed to this report.