Tariff hikes may backfire on US

China expected to respond with measured policies on boosting domestic demand

The new US administration's intention to impose massive tariffs on China and other trading partners risks undermining its commitment to fighting inflation, potentially heightening the costs for consumers in the United States while slowing US economic growth, economists and analysts said.

They added that China is poised to respond to tariff uncertainties with continuous, measured policies to vitalize the vast domestic market, which is likely to seek a steady GDP growth target of around 5 percent for 2025.

Zhou Mi, a senior researcher at the Chinese Academy of International Trade and Economic Cooperation, which is affiliated with China's Ministry of Commerce, said that if US President Donald Trump were to follow through on his threats and significantly hike tariffs on Chinese products, it would lead to a new wave of inflationary pressures in the US.