- President Trump’s tariff offensive against China appears to be backfiring as Beijing sidesteps U.S. consumers and boosts exports elsewhere. Chinese shipments to the U.S. plunged 27% in September, but overall exports rose 8.3%—their highest total this year—driven by strong demand from Europe and other markets. The World Bank now expects China’s economy to grow 4.8% in 2025, while it downgraded U.S. growth to 1.4%. Despite Trump’s renewed threat of 100% tariffs, analysts at UBS and Deutsche Bank say both sides appear open to compromise, with markets betting negotiations will resume soon.
At the beginning of his tariff standoff with Beijing, President Trump was confident in his strong hand. China’s economy was reliant on U.S. consumers, he said, and so it would have to make some compromises or risk losing them.
