China’s central bank has announced multiple measures to counter the economic impact of U.S. tariffs, including cutting interest rates and reducing bank reserve requirements.
These moves aim to free up approximately $137.6 billion for lending.
The announcement comes as both countries prepare for trade talks and as President Trump’s high tariffs—up to 145% on most Chinese products—begin affecting China’s export-driven economy.
In response, China has imposed retaliatory tariffs of up to 125% on American goods. Financial markets responded positively but cautiously to this news.