Beijing Likely to Use Stimulus to Offset Economic Impact of Higher TariffsMarket Talk

Beijing is likely to use stimulus measures to offset tariffs to achieve its GDP growth target this year, Macquarie economists write in a note. China's policy stimulus is reactive, as it would respond to the economic impact of tariffs rather than the news of tariffs itself, they note. Fiscal and housing policies will likely be the main stimulus tools, they add. China's fiscal plan for this year is about 2 percentage points higher than last year's GDP, which may reflect Beijing's initial assessment of Trump tariff 2.0, they add. Beijing's first step is to accelerate the implementation of its fiscal plan, and if that's not enough, the policymakers will likely roll out more property policies later this year, they say. (jiahui.huang@wsj.com; @ivy_jiahuihuang)