Goldman Sachs Predicts Fiscal Easing in China Amid Tariff Tensions

Goldman Sachs anticipates that China’s government will significantly boost fiscal easing efforts in response to heightened U.S. tariffs, which have surpassed initial expectations. This development follows American President Donald Trump’s announcement last week, which threatens to reduce China’s GDP growth by at least 0.7 percentage point in the current year. Before the tariff increase, Goldman had observed a favorable trajectory in growth, prompting a possible upward adjustment to its 2025 GDP forecasts. According to China’s state-run People’s Daily, there are several monetary policy tools available, such as cuts to reserve requirement ratios and interest rate reductions, highlighting the government’s readiness…