Beijing Mulls Front-Loading Economic Support to Offset Impact of U.S. Tariffs

China Considers Early Stimulus Push as U.S. Tariff Pressure Mounts

In a bid to stabilize its economy amid escalating trade tensions, China is reportedly exploring the option of accelerating monetary stimulus efforts, according to updates from Trade The News.

The move follows President Donald Trump’s announcement of sweeping reciprocal tariffs on nearly all U.S. trading partners, including a sharp increase in levies on Chinese goods. On Sunday, Trump doubled down, stating there would be no trade deal with Beijing unless the U.S. trade deficit is eliminated — a stance that has rocked global markets.

Bitcoin fell below $80,000 over the weekend, while broader financial markets continued to reel from Thursday’s announcement. The ripple effect has led Goldman Sachs to adjust its forecast for U.S. interest rate cuts, now projecting a total of 130 basis points in 2025, up from 105 basis points just last week. The Reserve Bank of Australia is also expected to ease policy, with markets pricing in four cuts this year.

China’s potential front-loaded stimulus may signal that Beijing is preparing for a prolonged standoff in the intensifying trade war.