Kids may get 2 dolls in US, but China will suffer from trade war: Trump

Donald Trump, through his remarks, has tried to reassure Americans that the tariffs will not result in a recession

US President Donald Trump on Wednesday (local time) said that China would continue to suffer from his trade war, even if it means that American kids may get only two dolls instead of 30, reported the Associated Press.

 

The US President assured Americans that his tariffs will not result in a recession, while acknowledging that they could result in fewer and costlier products.

 

According to the UN's COMTRADE database, China continues to be the dominant supplier of toys to the US market. In 2024, the US imported nearly $32.04 billion worth of toys, games, and sports requisites from China.   

 

 

Trump's remarks come after data from the Commerce Department revealed that the US economy contracted at an annual rate of 0.3 per cent during the first three months of 2025, which also aligns with Trump's first 100 days in office.

 

The decline in the US economy was due to the increase in imports as companies rushed to bring in goods before tariffs on autos and other imports came into effect, the report said.

 

Trump informed his Cabinet that his tariffs on China implied that the latter was having difficulty because their factories were not doing business. He further claimed that the US did not need imports from the world's dominant manufacturer. 

 

China exposes luxury goods market

 

In the wake of Trump's tariffs, the Chinese manufacturers have exposed the American luxury goods market. Several Chinese suppliers took to platforms like X and TikTok to showcase their craftsmanship while offering direct-to-consumer sales at a fraction of prices. These suppliers claimed that the $34,000 Birkin bag costs only $1,400 to manufacturers. 

 

Trump tariffs

 

Trump announced reciprocal tariffs on over 100 countries on April 2. While most countries tried to negotiate a trade deal with the US to avoid the reciprocal tariffs, China retaliated and engaged in a trade war with the US. On April 9, Trump announced a 90-day pause on these tariffs, however, he excluded China.