The conflict prompted Beijing to expand trade with other markets, and exports to the US fell by 21%. Commercial data published on Friday show shipments from China to the European Union rising 8% last month.
Meanwhile, the National Chinese economy is harassed by flawless production numbers and a deflating spiral unlikely, because competition on the domestic market is intensifying amongst the weak labor market.
While the American economy continues, analysts warn that the shortages of goods will appear in the form of empty shelves in the coming weeks and months, threatening jobs, especially in automotive transport, logistics and retail. The federal reserve warned against growing uncertainty. The US economy has been contracted for the first time since 2022 at the starting of the 12 months, although the demand indicator underlying the basis remained firm.
The consequences of the US industrial fight are ricochene around the world. This 12 months, the World Trade Organization has reduced the trade in goods and is currently expecting a volume of 0.2% – almost 3 percentage points lower than it could be and not using a trade war. In April, the International Monetary Fund has rapidly reduced the expectations of development this 12 months and the next, warning that perspectives can worsen much more.
For Trump, the highest goal is to re -balance trade, and the president repeated on Friday that he wanted Beijing to open his markets to the USA. Trump has also repeatedly signaled that he considers access to the American market as a key lever to force concessions.
“They have a lot to get” from conversations, Trump told journalists on Thursday. “In a sense, they have much more to gain than we do.”
But China perceives tariffs as one aspect of a broader US traffic to cut back its growth. For Beijing, the conflict isn’t only a trade war, said Regina IP, the legislator in Hong Kong and the convector of the headmaster John Lee. She said she was threatening his survival.
“China decided to take it to the chin -” Don’t kneel ” – they take a very hard line,” she said. However, she warned: “Both sides must play their cards very carefully. They must make every move not very carefully.”
