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China Slashes Interest Rates to Counter Trump’s Tariff Impact

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.

Original Source: MarketWatch

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