TRUMP'S TARIFFS BITE INTO CHINA'S ECONOMY AS BEIJING SILENTLY EASES TRADE PRESSURE

An Emirati Magazine publication – Released on May 01,2025 | www.emiratimagazine.com

U.S. President Donald Trump’s steep tariffs on Chinese imports—reaching up to 145%—are now visibly impacting China’s economy, already weakened by post-pandemic struggles and a lingering property crisis. While Chinese leaders publicly downplay the effects, factory activity shrank in April, with the official PMI falling to 49, indicating contraction. Economists link the downturn to the trade war, predicting only 3.5% growth for 2025 despite government stimulus.

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Large manufacturers are suffering more than smaller ones due to declining exports and employment. Business confidence is faltering, and China’s copper inventories may run out by June, driven by U.S. buyers rushing to secure supply. A copper scrap export ban by the U.S. could worsen the crisis.

Meanwhile, China is quietly offering tariff exemptions on key U.S. goods—such as pharmaceuticals and microchips—despite its tough public stance. This “whitelist” strategy aims to protect domestic industries while softening the blow of retaliatory measures.