China’s exports are so huge they’re now lowering inflation in other countries

The “Liberation Day” tariffs of April 2, 2025, were the best example of President Trump’s economic nationalism—the concept that nations should prioritize their own industries and workforce over global trade, using protectionist policies when necessary.Trump was particularly harsh toward China, slapping the country with various tariffs of up to 50% (until they were ruled illegal by the U.S. Supreme Court). But none of that appears to have held China back. The United States’ biggest economic rival leads the pack when it comes to exports, which are continuing to grow, while its imports continue to pull back. Those exports are so cheap and ubiquitous that they’re reducing inflation in some developed markets, according to Goldman Sachs.

According to data from the Chinese government, even U.S. imports from China are on the rise—suggesting that the trade war did not wean American households off cheaper Chinese goods.

In June, the General Administration of Customs for the People’s Republic of China reported that it had exported goods and services worth $43 billion to the U.S., and nearly $216 billion for the year to date. Conversely, it reported imports of $14.6 billion in July: The trade balance, already heavily weighted to China’s benefit, saw exports to the U.S. rise 0.2% year on year, and imports drop 0.8%.

It appears the new levies........

© Fortune