Report reveals 'new evidence of global pain' from Trump's signature policy

Axios reports "new evidence of global pain" emerging from President Donald Trump's trade policy, saying it has "single-handedly scrambled the world economy."

"Economic readjustment" to Trump's double-digit tariffs, Axios reports, has been "bumpy," and, "even with trade deals, the levies imposed on their goods are still well above pre-Trump norms."

Japan's economy shrank by almost two percent on an annualized basis in the third quarter, the first time activity contracted in more than a year, Axios reports, and Switzerland's GDP in the same period fell by 0.5 percent, the first quarterly drop since 2023.

As tariffs weighed on demand for their goods, the U.S. market saw a slowdown in exports that "was a key drag on the respective economies," Axios says.

Despite a U.S.-Japan trade deal in July that slashed tariffs from 25 percent to 15 percent, shipments of vehicles plunged in Japan. In Switzerland, "U.S. exports of watches, chocolate and more plummeted as the near-40 percent tariff rate imposed by Trump in August took effect," Axios reports.

This data, released Sunday night, "follows a string of bleak economic readings in China that show the economy is on weaker footing than previously known — even as it ramped up trade tensions with the U.S," Axios says.

"In recent years, strong exports and robust investment have helped make up for slumping demand from Chinese consumers. Now both sides of its economy are struggling in tandem, a recipe for a deeper slowdown," they write.

Chinese spending on buildings and equipment also faced an "unprecedented decline," they report.

"Exports unexpectedly crashed in October, shrinking more than 1 percent— the worst since February, when Trump announced an inaugural tariff hike on Chinese goods," Axios notes.

Economist Alicia Garcia-Herrero told Reuters that "Chinese exports cannot continue to grow forever, and it's not only because of the U.S. but because the global economy is slowing."

And while recent trade agreements with China and Switzerland have cut tariffs, Axios reports, "they remain notably higher than before Trump took office — a sign that the levies might continue to weigh on the global economy, even if not as much as they did this year."

China trade truces with Trump have fallen apart before, and will likely do so again, they note, and "China appears to already be slow-walking its purchases of U.S. soybeans, a key aspect of the nations' trade agreement," Axios reports.

Todd Main, market development director of the Illinois Soybean Association says there seems to be no movement whatsoever on China's promises.

China promised to buy 12 million metric tons of soybeans this year, "but we've not seen any of that," Main says.