financetom
Economy
financetom
/
Economy
/
As China Downplays Trump Tariffs With 5% Growth Target, Top Economist Warns Of '90% Chance Of A US Recession' Amid Trade War
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
As China Downplays Trump Tariffs With 5% Growth Target, Top Economist Warns Of '90% Chance Of A US Recession' Amid Trade War
May 25, 2025 9:36 PM

China's National Development and Reform Commission (NDRC), the country's top economic planning agency, is downplaying the impact of President Donald Trump's tariffs and projecting strong growth despite mounting macroeconomic headwinds.

What Happened: On Monday, Zhao Chenxin, Vice Head of the NDRC, said he was “fully confident” that China would meet its target of 5% economic growth in 2025, despite mounting uncertainties and warnings of a sharp downturn from leading analysts, according to a Reuters report.

“No Matter how the international situation changes, we will anchor our development goals, maintain strategic focus, and concentrate on doing our own thing,” Zhao said.

This comes amid a particularly difficult period for the Chinese economy, which is already reeling from deflation and a prolonged property crisis.

At the same time, Torsten Slok, the Chief Economist at Apollo Global Management, joined the growing chorus of experts and eminent intellectuals in recent weeks by predicting a “90% chance we’ll have a recession” if the tariffs remain at their current levels.

Speaking on the Economics Matters podcast on Friday, Slok said that small businesses that account for 80% of employment in the U.S. and 80% of the capital expenditure will be hit hard by the tariffs.

See Also: Nvidia Faces New Challenge As Huawei Tests Powerful Ascend 910D AI Chip Amid US Sanctions, Aiming To Disrupt High-End Market: Report

Why It Matters: Recession fears have continually edged higher throughout this past month, with economists, banks, and betting markets all pricing a high probability of a recession this year.

There are, of course, others with a contrarian take on this, such as the CEO of Chevron Corp. ( CVX ) , who said last week that there were “no signs of a recession at this point.”

Even the International Monetary Fund sees a slowdown in the global economy, but stops short of forecasting a recession, offering reassurance that the world can weather Washington’s tariff storm.

Read More:

Tom Lee Backs Scott Bessent’s ‘White House Put’ Theory As Nasdaq Flips From Worst April Start Since Great Depression To Major Comeback

Image Via Shutterstock

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US home sales crumble in May on higher rates and record prices, says Redfin
US home sales crumble in May on higher rates and record prices, says Redfin
Jun 14, 2024
(Reuters) - U.S. home sales in May fell to among the lowest levels in the past decade, real estate brokerage Redfin said in a report, as both demand and supply remained sluggish in a high-mortgage rate environment. WHY IT'S IMPORTANT Housing affordability in the U.S. is at an all-time low. Median home prices have scaled record highs and the 30-year...
US Dollar Rises Early Friday Ahead of Import Prices, Michigan Sentiment, Fed Appearances
US Dollar Rises Early Friday Ahead of Import Prices, Michigan Sentiment, Fed Appearances
Jun 14, 2024
07:30 AM EDT, 06/14/2024 (MT Newswires) -- The US dollar rose against its major trading partners early Friday, except for a decline versus the yen, before the release of import and export price data for May at 8:30 am ET and the preliminary University of Michigan Consumer Sentiment index for June at 10:00 at ET. The St. Louis Federal Reserve...
US equity funds saw largest weekly outflow in 18 months ahead of Fed decision
US equity funds saw largest weekly outflow in 18 months ahead of Fed decision
Jun 14, 2024
(Reuters) - U.S. equity funds observed heavy outflows in the seven days through June 12 as some investors booked profits and exercised caution ahead of the Federal Reserve's policy decision. Investors ditched U.S. equity funds worth a net $21.93 billion during the week in their largest weekly net disposal since mid-December 2022, data from LSEG showed. Despite the Fed leaving...
US import prices unexpectedly fall in May
US import prices unexpectedly fall in May
Jun 14, 2024
WASHINGTON (Reuters) - U.S. import prices import unexpectedly fell in May amid lower prices for energy products, providing another boost to the domestic inflation outlook. Import prices dropped 0.4% last month after an unrevised 0.9% surge in April, the Labor Department's Bureau of Labor Statistics said on Friday. That was the first decline in import prices since December. Economists polled...
Copyright 2023-2025 - www.financetom.com All Rights Reserved