China Gains Ground as US Allies Diversify Trade Amid Trump's Tariffs

• US allies are diversifying economic portfolios, with China emerging as a primary beneficiary, due to unpredictable US tariff threats.
• China reported a record $1.2 trillion trade surplus by 2025, rerouting exports to the Global South and Europe despite a 20% drop in US exports.
• Exports to Africa jumped over 25%, and double-digit growth was seen in Southeast Asia and the EU, cushioning China against US sanctions.
• Major economies like Canada are negotiating trade deals with China, signaling a broader readiness to hedge against US protectionism.
• Trump's tariff policy inadvertently accelerates a restructuring of global trade networks, potentially reshaping economic power balances.

Why It Matters: US allies are turning to China for stable trade as Trump's tariffs drive global economic realignment.