Jim Cramer says China is rapidly adapting to the challenges posed by President Donald Trump’s tariffs and trade war and may now be less dependent on the U.S. market than in the past.
China is ‘learning to live without us’
Amid the recent escalation of the U.S.-China trade war, the host of CNBC’s “Mad Money” said Monday that China may be in the strongest position in the conflict. “I believe China holds the cards,” he said.
“While China’s total exports outside the United States increased by nearly 15%, exports to the United States plummeted by 27%,” Cramer said, pointing to reported Chinese trade statistics, adding that despite this significant decline, “total exports increased by 8% in September.” As a result, China may be “learning to live without us,” Kramer said.
Cramer acknowledged skepticism about China’s data, but added: “There’s no point in lying about these trade statistics because we also receive data from our trading partners.”
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President Trump eases new tariffs on China
Last week, President Trump imposed 100% tariffs on imports from China, significantly escalating the trade war between the two countries.
This is in response to China’s decision to add more rare earth elements to its list of export controls, in a set of expanded rules covering dozens of mining and refining technologies and equipment. From now on, foreign companies will need an export permit if their products contain Chinese rare earths.
President Trump has since reversed his threat of new tariffs, saying on Sunday that “everything will be fine,” while adding in a post on Truth Social that Chinese President Xi Jinping “has been through a lot.”
In his post, President Trump also said, “The United States wants to help China, not hurt it.” Economist Nouriel Roubini points out that market discipline continues to force President Trump to “withdraw” faster than ever before.
Mr. Xi said this (eyelashes). Another TALO and TACO cycle. Those periods have become shorter, but the market is still overreacting instead of diluting it in advance, knowing that as soon as he lashes out, market discipline will have to turn him down 🧨🎢🎡🎢🐓
— Nouriel Roubini (@Nouriel) October 13, 2025
Photo courtesy: Shutterstock
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