In 2025, China’s trade surplus hit a record high of nearly $1.2 trillion, fueled by a 5.5% increase in exports, totaling $3.77 trillion, and flat imports. Despite a 20% drop in exports to the U.S. due to tariffs, China’s manufacturers expanded into other global markets, especially Africa, Southeast Asia, and Europe. Strong demand for items like computer chips and cars, with auto exports surging 21%, bolstered these exports. Economists anticipate exports will continue to drive growth in 2026, though internal factors like decreased domestic demand may slow future growth.
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The European Union’s response to US tariffs may center on regulating how American tech giants utilize European user data, a significant escalation in the ongoing trade dispute. This strategy, suggested by France’s finance minister, leverages a critical vulnerability: the immense value of the data these companies extract from the vast European market.
The sheer volume of data collected by American tech companies from European users represents a powerful bargaining chip. By implementing stricter regulations on data usage, the EU could significantly increase the cost of doing business for these companies, potentially forcing them to negotiate more favorable trade terms. This approach avoids the pitfalls of directly targeting products, as previous sanctions did, instead focusing on the services and software sector where the US holds a considerable advantage.… Continue reading
The US trade deficit with Vietnam has exploded, surpassing a staggering $110 billion. This dramatic surge is largely attributed to the Vietnamese dong’s weakness. A weaker dong makes Vietnamese exports significantly cheaper for American consumers, fueling demand and widening the trade imbalance. The situation highlights the complex interplay between currency values and international trade, underscoring the challenges faced in managing global economic relationships.
This massive deficit isn’t simply about lost American money; it reflects a dynamic where the US gains access to cheaper goods. However, the sheer scale of the deficit raises concerns about potential imbalances in the economic relationship between the two countries.… Continue reading
John Q. Hosedrinker 
Matt Underwood