China's economy expands 5.4% in Q1 CY25 before US tariff

China's economic growth beat expectations, as its gross domestic product (GDP) expanded 5.4% in the first three months of 2025 from a year back, according to the numbers released by the National Bureau of Statistics (NBS) on Wednesday, April 16.

Most economists had predicted growth in the range of 5.1% to 5.2% in the first quarter of the calendar year 2025.

The outlook is expected to deteriorate as the tariff on most goods sent to the United States of America stands at 145%.

Industrial output expanded by 7.7% in the first quarter from a year earlier. Retail sales advanced 5.9%, the fastest since December 2023.

Last week, Trump increased levies on Chinese goods to 145%. In retaliation, Beijing increases tariffs on US goods to 125%.

However, the US, now, has temporarily excluded electronics from the 145% tariff. They would be charged at a 20% rate.

"NOBODY is getting 'off the hook' for the unfair Trade Balances, and Non Monetary Tariff Barriers...There was no Tariff 'exception' announced on Friday. These products are subject to the existing 20% Fentanyl Tariffs, and they are just moving to a different Tariff 'bucket'...We are taking a look at Semiconductors and the WHOLE ELECTRONICS SUPPLY CHAIN in the upcoming National Security Tariff Investigations," Trump said on Truth Social.

The trade war's impact will likely be visible in China's economy starting in April.