Beijing looks to boost economy in light of tariff hit - report

9th Apr 2025 10:50

(Sharecast News) - Beijing is discussing ways to shore up the economy, it was reported on Wednesday, after Donald Trump's historic 104% tariff came into effect.

According to Reuters, Chinese leaders will meet on Wednesday to discuss ways to boost the domestic economy and stabilise capital markets in light of the levy.

Those due to attend include cabinet ministers as well as representatives from various government and regulatory bodies, Reuters said, citing unnamed people familiar with the matter.

The US president announced an effective 54% tariff on all Chinese imports last week, as part of a sweeping regime of taxes imposed on countries worldwide.

China's rate was then hiked to 104% after Beijing promised retaliatory levies of its own.

Global markets gave up Tuesday's gains and once again plummeted on Wednesday, as the tariff regime came into force.

However, Chinese stocks were firmer, with the blue chip CSI 300 Index closing 1% stronger. Hong Kong's Hang Seng also finished in the green, up 1%.

A Chinese government white paper on trade ties with the US, released early on Wednesday, reiterated Beijing's intention to use countermeasures against Washington.

But it also hinted that negotiations between the world's two biggest economies were possible. State media reported that, according to the paper, it was "normal" for China and America to have "differences and frictions" and that Beijing was "willing to communicate with the US on important issues in the economic and trade fields".

Joshua Mahony, chief market analyst at Scope Markets, said: "If we thought the figures cooked up by Trump and his team were bad, we now find ourselves facing a trade war with 104% tariffs being placed on all Chinese imports.

"While Trump speculated that China wants to make a deal, we have seen precious few signs that any conversations are taking place right now."