2. Economic Repercussions
- China’s GDP Downgrades: Goldman Sachs and Citi cut China’s 2025 growth forecasts to 4.0% and 4.2%, respectively, citing tariff impacts. U.S. tariffs could reduce China’s GDP by 2.2 percentage points this year .
- Global Trade Slowdown: The WTO predicts a 0.2% decline** in global trade volume for 2025, with potential losses of 1.5% if tariffs escalate further . The UNCTAD also revised global growth downward to 2.3%, nearing recession thresholds .
- Comparative Economic Health:
- U.S. Economy: $29.2 trillion GDP (2024), driven by consumer spending and tech investments .
- China’s Challenges: Slower domestic consumption, a struggling real estate sector, and local government debt exceeding $2 trillion .
