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China’s economy grows steadily despite tariffs

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@fyinews team

16/07/2025

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  1. China’s economy grew steadily in the second quarter of 2025, despite U.S. tariffs that reached as high as 145% (from late April to early May).
  2. Experts attribute this resilience to investments in major public infrastructure projects (e.g. railways) and to increased exports outside the U.S., particularly to Southeast Asia.
  3. The annual growth rate of the economy is estimated at 4.1%, slightly lower than the rate in the first quarter of 2025, during which exports surged as consumers rushed to get ahead of the tariffs.

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China’s economy grew steadily in the second quarter of 2025, with a growth rate of 1.1%, surpassing economists’ forecasts, despite the fact that the U.S. imposed high tariffs on Chinese imports, reaching up to 145% (from late April to early May), as part of a “trade war” between the two countries.

Donald Trump first imposed a 10% tariff on all Chinese products in February, which he raised to 20% in March. During the same period, China imposed a 10% tariff on natural gas, coal, and agricultural machinery (February), followed by another 10% on food and agricultural products (March).

In April, the U.S. raised tariffs to 54%, prompting China to respond with a 34% increase. This triggered successive rounds of tariff hikes, reaching 104% and 154% from the U.S. side, and 84% and 125% from China. Since May, when the two countries began negotiations, the U.S. has imposed a 30% tariff while China’s stands at 10%.

In the second quarter of 2025, U.S. tariffs ranged from 54% to 154% amid the ongoing “trade war” between the two nations. They currently remain at 30%.

Experts attribute the resilience of China’s economy to investments in major public infrastructure projects (such as high-speed railways) and factories, as well as increased exports to Europe, Africa, and especially Southeast Asian countries—many of which serve as transit points for goods ultimately destined for the U.S.

The annual growth rate of the economy is estimated at 4.1%, nearly matching that of the first quarter of 2025, which was particularly strong as exports surged in anticipation of the tariffs.

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