Donald Trump’s chaos goes beyond tariffs. Here’s how some are trying to cope

Subscribe to enjoy similar stories. To borrow from the Greek philosopher Heraclitus, the only constant in Donald Trump’s second presidency so far is change—in tariffs. Tariff rates and exemptions are constantly evolving in response to market reactions, diplomatic efforts, trade negotiations and domestic lobbying.

In keeping track of who is being hit by what tariff, one cannot overlook other, equally important, geopolitical shifts that have taken place in the last month or so and are somewhat attributable to the US president. The annual “Two Sessions" Parliamentary conference in China set an ambitious growth target of 5% for 2025, to be supported through a higher fiscal deficit and looser monetary policy. The announcements made two intentions very clear.

First, China has decided to battle tariffs with fiscal stimulus. It aims to boost household spending to make up for a fall in export revenue. Key proposals include an expanded trade-in programme for household purchases, revamped leave rules to boost tourism, and the creation of millions of urban jobs.

Second, China wants all hands on deck as it braces for impact: There were promises to support private sector growth, fund cutting-edge technologies, and maintain high defence spending. One can argue that the 5% target is simply a show of confidence. However, China has a track record of never missing growth targets, even if it means more stimulus.

The good news? In the process, it may rebalance its economy towards higher household consumption. Incoming German Chancellor Friedrich Merz and his coalition partners agreed on a historical deal to release the “debt brakes" that have imposed strict fiscal restraint on Germany since 2009. The decision was precipitated by Trump's