China's economy grew 5.4% in first quarter but US tariffs putting 'pressure' on economy, trade

China claimed on Wednesday that US tariffs were putting "pressure" on the country's economy and trade, despite Beijing unveiling first quarter growth. Amid escalating diplomatic tensions and an unprecedented trade war between Washington and Beijing, US levies imposed on China rose to 145 percent, and Beijing set a retaliatory 125 percent toll on US imports.

"At the moment, the imposition of high tariffs by the US will put certain pressures on our country's foreign trade and economy," Sheng Laiyun, deputy commissioner of the National Bureau of Statistics, told a press conference.

However, he added that "it will not change the general trend of China's economy continuing to improve in the long run".

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What did the NBS data say?

The spokesperson of the National Bureau of Statistics (NBS) Liu Aihua released China's national economic growth for the second quarter, saying that its economy grew a forecast-beating 5.4 per cent in the first quarter. This happened because the exporters rushed to get goods out of factory gates ahead of new US tariffs.

NBS said that "according to preliminary estimates, the gross domestic product in the first quarter… (was) up by 5.4 percent year on year at constant prices".

China said that the industrial output also soared 6.5 percent in the first quarter of the year, up from 5.7 percent in the final three months of 2024.

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It further mentioned that the retail sales, which is a key factor to analyse consumer demand, climbed 4.6 percent year-on-year.

However, Beijing also warned the global economic environment was becoming more "complex and severe" and that more was needed to boost growth and consumption.

"The foundation for sustained economic recovery and growth is yet to be consolidated," the NBS said, further adding that there was a need for "more proactive and effective macro policies".

Figures released on Monday showed Beijing's exports soared more than 12 percent on-year in March, which smashing expectations. Several analysts have attributed it to a "front-loading" of orders ahead of Trump's so-called "Liberation Day" tariffs on April 2.