President Donald Trump on Wednesday acknowledged that his tariffs could result in fewer and costlier products in the United States, saying American kids might “have two dolls instead of 30 dolls,” but he insisted China will suffer more from his trade war.

China’s economy showed its first big signs of damage from the trade war, as steep U.S. tariffs pummeled export orders and production at the country’s factories. A gauge of new export orders fell in April to its lowest reading since Covid-19 was ravaging the country in 2022,

Since China first joined the World Trade Organisation a quarter century ago, it has developed a particularly Darwinian version of capitalism, in which companies must tolerate unending rounds of brutal price competition,