Overview

• China reported a 5.4% GDP growth in Q1 2025, exceeding the anticipated 5.2%, driven by increased industrial production and retail sales.
• The US raised tariffs on Chinese goods to 145%, with China retaliating at 125%, heightening trade tensions and economic uncertainty.
• The WTO predicts significant economic fallout in North America, with GDP growth dropping to 0.4% and exports declining by 12.6% in 2025.
• California has filed a lawsuit against the Trump administration, challenging the legality of the tariffs and citing economic harm to the state.
• Analysts forecast a slowdown in China’s growth starting in Q2 2025, as the effects of the trade conflict and domestic economic pressures take hold.