- President Trump’s tariff strategy was based on the belief that China, heavily reliant on the U.S. market, would absorb higher export costs and be forced to negotiate. However, recent data shows Chinese exports to the U.S. have sharply declined as China diversifies to other markets, undermining Trump’s leverage and casting uncertainty over the future of U.S.-China trade relations despite a temporary truce.
When President Trump announced his tariff regime, he said China would have to “absorb” the increases to export prices and would be forced to the negotiating table to agree to new trading terms.
