FILE PHOTO: A 3D-printed miniature model depicting U.S. President Donald Trump, Chinese flag and fragment of Taiwanese flag in this illustration taken,  April 17, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
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CNBC TV1819-01-2026, 13:09

Trump's Trade War Backfires: US Exports Hit, China's Global Influence Grows

  • Donald Trump's trade war, initiated in his first term and expanded in his second, aimed to reduce the US trade deficit and revive manufacturing.
  • Tariffs of up to 25% on Chinese goods disrupted supply chains and raised costs for US importers, leading some companies to shift production to Southeast Asia.
  • US agricultural exports to China sharply declined due to retaliatory tariffs, with China increasing imports from Brazil, Argentina, and ASEAN states.
  • Despite US efforts, China maintained its 30% share of global manufacturing output, and foreign firms expanded production within China, reinforcing its supply chain centrality.
  • A global public opinion survey by ECFR indicates a growing belief in a multipolar world, with a majority expecting China's influence to rise by 2030.

Why It Matters: Trump's trade policies unintentionally strengthened China's global economic and diplomatic position, accelerating a shift in global power.

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