Beijing is prepared to provide sufficient domestic stimulus to offset the impact of Trump's increased tariffs if the country sets "around 5%" as its GDP growth target for next year, Macquarie Group's Larry Hu wrote in a note. The current Bloomberg consensus for 2025 GDP growth is 4.5%, while the consensus among global banks is closer to 4%, he added. Such a pessimistic outlook is understandable given the deflationary pressures in the economy, which could be exacerbated by Trump's "tariff 2.0," Hu said.