Beijing Mulls Accelerated Stimulus as Trade Rift with U.S. Deepens
Chinese policymakers are reportedly considering fast-tracking economic stimulus efforts in response to growing pressure from President Donald Trump’s aggressive tariff stance, according to Trade The News.
The discussions come just a day after Trump declared he would not pursue a trade agreement with China unless the longstanding trade deficit is resolved—remarks that have fueled market turmoil. Global equities and digital assets have tumbled since last week’s sweeping tariff announcement, with bitcoin briefly falling below the $80,000 mark.
In response to the escalating economic uncertainty, Goldman Sachs now anticipates 130 basis points in Federal Reserve rate cuts for 2025, up from its previous estimate of 105. Meanwhile, expectations for the Reserve Bank of Australia have shifted, with markets now pricing in four rate cuts.
China’s proactive stimulus planning could be a signal that the world’s second-largest economy is preparing for prolonged economic friction—and is ready to counteract the ripple effects before they fully hit.
