U.S. Sen. Elizabeth Warren (D-MA) throughout a Senate Finance Committee listening to within the Dirksen Senate Workplace Constructing on April 8, 2025 in Washington, DC.
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President Donald Trump is “dropping a self-inflicted commerce battle” with China, leaving america with a “weak hand” going into his assembly with Chinese language President Xi Jinping, Senate Democrats stated Wednesday in a brand new report on the consequences of Trump’s wide-ranging tariffs.
“Trump’s commerce wars have imposed vital prices” on U.S. customers and companies, “bought out American farmers,” and the president “has strengthened China’s hand whereas weakening America’s leverage,” the report says.
CNBC obtained the report by Democrats on the Senate Committee on Banking, Housing, and City Affairs a day earlier than Trump is about to satisfy Xi in South Korea.
Trump is “placing America’s long-term prosperity and safety in danger,” Sen. Elizabeth Warren of Massachusetts, the rating Democrat on the committee, stated in a press release to CNBC.
“Trump wants to vary course on his commerce battle with China now and cease hurting American households, farmers, and companies,” Warren stated.
Warren’s feedback got here earlier than Trump, talking on the Asia Pacific Financial Discussion board in Gyoeongju, South Korea, stated he was optimistic of reaching a commerce cope with Xi, which may embrace lowering tariffs on U.S. imports of Chinese language items.
“It’ll work out very, very properly for everyone, and … I stay up for seeing him,” Trump stated.
The report factors to inflation information and different financial metrics within the wake of Trump’s implementation of world tariffs in April.
“Between January and April, year-over-year Shopper Worth Index (CPI) inflation was falling, but it surely has rebounded since Could — after Trump introduced his common tariffs,” the report stated.
“Final week, CPI information confirmed that inflation elevated by 3 % year-over-year in September, the very best fee since Could 2024,” the report stated.
Core items inflation, which incorporates bodily merchandise similar to clothes, furnishings, electronics, home equipment, and automobiles, however excludes meals and power, additionally elevated 1.5 % over the 12 months in September. Grocery items additionally trended larger.
“Research recommend that President Trump’s tariffs are costing American households round $1,500 extra per 12 months and disproportionately harming lower- and middle-income households that spend a better share of their incomes on important items,” the report stated.
Along with inflation information, the report additionally pointed to jobs information as proof that Trump’s commerce coverage shouldn’t be reaping rewards.
“Quite than reviving manufacturing as promised, Trump’s technique has additionally brought about the sector to shed 42,000 jobs and manufacturing employment has contracted for 4 straight months — the longest month-to-month streak of losses since early 2020,” the report stated.
Warren and the opposite committee Democrats stated that regardless of Trump’s speak about an impending cope with Xi, it’s clear China has the higher hand and continues to impose ache on American companies and farmers.
The report cited uncommon earths export controls imposed by China, and that nation’s refusal, since Could, to purchase U.S.-grown soybeans.
Treasury Secretary Scott Bessent stated earlier this week that there was a framework of a deal that might see China defer restrictions on uncommon earths exports, and that additionally would alleviate U.S. farmers’ considerations.
China bought $12.6 billion price of American soybeans in 2024, however simply $2.5 billion price within the first half of 2025 earlier than the efficient boycott started.
“Concurrently, Trump’s tariffs have raised prices on farm inputs like fertilizer and tools, squeezing farmers from each side,” the report famous.
The report additionally says that China has expanded exports within the wake of Trump’s tariffs.
“In September alone, China’s exports to Africa elevated 56.4%, to Southeast Asia by 15.6%, and to the EU [European Union] by 14%,” the report stated.
“China’s exports proceed rising regardless of U.S. tariffs, reaching file commerce surpluses by routing items by means of third nations.
In a press release to CNBC, White Home spokesman Kush Desai wrote, “It is onerous to inform if Democrats are delusional or wishcasting extra doom for the American folks, on prime of their idiotic authorities shutdown. The fact is that the President’s commerce and tariff agenda has already secured historic commerce offers with nations that in whole have an over $30 trillion economic system and one billion folks. This similar agenda can also be driving trillions in investments to make and rent in America, particularly in sectors which can be vital to our nationwide and financial safety.”
