American businesses are cancelling orders from China, postponing expansion plans and hunkering down to see what trade policy surprises President Donald Trump plans to spring on them next.

By Kevin Yao BEIJING (Reuters) -Chinese policymakers on Monday sought to assuage concerns the broad U.S. tariffs could derail efforts to shore up a fragile economic recovery, even as analysts warn the hefty levies raise the risk of a sharp downturn in growth.

A new report shows the first decline in the U.S. economy in three years. Trump urged patience and said his tariffs will lead to boom 'like no other.'

Trump inherited an economy that was firing on most, but not all, cylinders,” said Ryan Sweet at Oxford Economics.

Voters returned Donald Trump to the White House in November believing he would be better for the economy than his opponent, Democratic Vice President Kamala Harris.

The US economy unexpectedly contracted by 0.3% in the first quarter of 2025, marking the first quarterly decline in three years and defying economists’ forecasts of modest growth. -The Commerce Department cited rising imports and decreased government spending.