The US is about to hit China with yet more tariffs. How will Beijing respond?

South China Morning Post

03-03-2025

China may introduce a round of retaliatory tariffs against the United States if Washington follows through on threats to raise duties on Chinese imports by another 10 per cent, Goldman Sachs has predicted.
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Meanwhile, Beijing is likely to supplement the tit-for-tat duties with a broader mix of economic measures to protect its exporters from the latest round of US tariffs, which are due to go into effect on Tuesday, analysts told the Post.
US President Donald Trump
announced on Thursday that his administration would hike tariffs on all Chinese imports by a further 10 per cent,
following a similar move last month, due to what he calls China's failure to prevent ingredients needed to make the illegal drug fentanyl from reaching America.
Beijing may decide to expand last year's economic stimulus policies to help Chinese exporters deal with the fallout, said Zhang Zhiwei, president and chief economist with Pinpoint Asset Management in Hong Kong.
Chinese lawmakers may raise the 2025 fiscal deficit to 4 per cent during
this week's 'two sessions' , one of China's most important political gatherings of the year, Zhang predicted. The deficit could be revised upwards again later to allow for increased government spending if needed, he added.
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Beijing will also 'selectively increase tariffs on US imports', said Dong Jinyue, principal economist at the Spanish financial services company BBVA.