According to Jim Cramer, China is quickly adapting to the trade challenges posed by President Donald Trump’s tariffs and trade wars, and may now be less reliant on American markets than ever before.
China Is ‘Learning To Live Without Us’
Amid the latest escalation in the trade war between the United States and China, the host of CNBC’s “Mad Money” said on Monday that China might have the stronger position in this standoff. “China believes they got the cards,” he said.
Pointing to trade statistics reported by the country, Cramer said, “China's total exports to destinations other than the United States grew nearly 15%, while their exports to U.S. plunged 27%,” adding that despite this steep decline, the nation’s “total exports in September rose 8%.” As a result, Cramer said that China maybe “learning to live without us.”
While Cramer acknowledged skepticism toward Chinese data, he added, “There's no point in lying about these trade numbers, because we'll get numbers from our trading partners too.”
Trump Eases On New China Tariffs
Last week, Trump imposed 100% additional tariffs on imports from China, marking a major escalation in the trade war between the two nations.
This was in response to China’s decision to add more rare earth elements to its export controls list, amid expanded rules to cover dozens of mining and refining technologies and equipment. Foreign companies will require an export license if their products contain Chinese rare earths going forward.
Trump has since walked back on his fresh tariff threats, saying that “it will all be fine,” on Sunday, while adding that Chinese President Xi Jinping “had a bad moment,” in a Truth Social post.
In his post, Trump also said that “The U.S.A. wants to help China, not hurt it,” economist Nouriel Roubini notes that “market discipline” continues to force Trump to “chicken out” faster than ever.
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