Incoming President Donald Trump’s threat to impose 60% tariffs on all Chinese imports threatens more pain on an China's already struggling economy. Goldman Sachs predicts that Trump’s proposed 60% tariffs on all Chinese imports will knock two percentage points off of China’s GDP. Swiss bank UBS cut its 2025 China GDP growth forecast to around 4%, down from 4.5%, citing the possibility of U.S. tariffs.
Yet despite the economic damage that these tariffs might cause, Fred Hu, founder of Chinese investment firm Primavera Capital Group, advised Beijing to hold back on retaliating to Trump's trade policy.
