11 April 2025: Chinese shares maintained relative composure after the US said tariffs on China amounted to 145%, signaling continued focus on Beijing’s stimulus plans.
A key gauge of Hong Kong-listed Chinese stocks swung between a loss 0.9% and a gain of 0.5% on Friday. The onshore CSI 300 Index saw modest declines. Both outperformed a broader Asian market gauge that fell as much as 2.1%.
The range-bound trading came after the White House clarified Thursday that after including a 20% levy imposed earlier this year, the total tariffs on China stand at 145%, a level far above what many economists said could decimate US-China trade. Now all eyes are on the outcome of a Thursday meeting planned by China’s top leaders to discuss additional economic stimulus to counter the impact of an escalating trade war.
Sentiment in China’s onshore market stayed resilient despite higher US tariffs, according to Morgan Stanley. Trading volumes rose and the national team’s buying continued, strategists including Laura Wang wrote in a note Thursday, referring a group of state-backed funds tasked to support local equities. However, there remains downside risks for the earnings outlook and things could look “visibly worse” from the second quarter onward, they added.
The relative calm also indicates lingering hopes among investors for an eventual deal between the world’s two biggest economies, after President Donald Trump indicated willingness to be “flexible” on exemptions for companies or countries from the tariff regime.
Summary: Chinese markets show surprising resilience as U.S. imposes steep 145% tariffs, with investors focusing on domestic growth and policy support.