Trade Done the Long Way Round

President Donald Trump's tariffs have hit direct trade with China, but taming Beijing's global export dominance has been more elusive... so far.

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China's shipments rose 21.8 percent year-on-year in January and February 2026, Chinese customs agency data shows, with a $213.6 billion trade surplus over the two months.

This is despite tit-for-tat tariffs between Washington and Beijing. China also restricted exports of rare earth permanent magnets and certain semiconductors in 2025, Chad P. Bown, senior fellow at the Peterson Institute for International Economics, said. “The consequences were frightening for carmakers...who remain heavily dependent on China for such vital inputs,” he wrote in a March 16 blog post.