How Trump’s Policies Are Strengthening China and Forcing a Reset in Global Trade Relations

The first year of US President Donald Trump’s second term has been fast-paced and disruptive. In twelve months, he signed hundreds of executive orders and launched a global trade war. He pulled the US out of major international institutions and agreements. His administration enforced mass deportations and authorised military strikes in Yemen, Iran, and Nigeria. In a dramatic foreign policy move, US authorities detained Venezuela’s sitting president and brought him to New York for trial. These actions have unsettled both global politics and financial markets.

Before Trump took office again in January last year, Europe viewed Russia as its main security threat. That perception has now shifted sharply. Many European states increasingly see the United States itself as a destabilising force. Financial markets reflect this concern. Gold and silver prices have reached record highs as investors rush to safer assets amid rising geopolitical uncertainty. The instability stems not from a rival power, but from the leader of the world’s largest economy.

Amid this turmoil, Trump’s most enduring impact on the global order may be unintended. He returned to power on the “Make America Great Again” slogan. Yet his policies appear to have strengthened China’s global standing. From the start, Trump sought to isolate Beijing through trade barriers and tighter controls on technology transfers. One year later, China recorded a historic trade surplus. In December alone, it reached levels comparable to the GDP of a top-20 global economy. China’s economy also grew by 5% in 2025, meeting official targets despite domestic pressures.

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Trump’s Policies End Up Boosting China and Reshaping Global Trade

China has responded to US pressure by deepening engagement with the rest of the world. Major economies have moved to reset ties with Beijing as Washington grows more unpredictable. Canada, South Korea, the UK, and Germany have all signalled renewed outreach to China. As the US steps back from its post-war role as the architect of global trade, countries increasingly seek alternatives. They now form partnerships among themselves, accelerating changes in global supply chains.

These shifts appear clearly in new trade patterns. Commerce within Asia, Africa, and West Asia now grows faster than trade linked to the US. India has also begun recalibrating its strategy. Exports to China surged sharply in December, while shipments to the US declined under steep American tariffs. Global opinion polls point to a further rise in China’s influence. At the same time, trust in the US continues to weaken among allies and rivals alike. Together, these trends suggest that Trump’s aggressive policies have helped reshape the global order in China’s favour.

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