China's premier says higher tariffs have dealt a “severe blow” to the world economy, even as China's own trade surplus has surged past $1 trillion.

Chinese firms are expanding in Vietnam, leading investment inflows and sending record shipments to Hanoi in defiance of U. calls for decoupling, as the Communist neighbours beef up ties.

The tariffs will apply to goods from China and other nations. Washington has been pressuring Mexico to move away from dealing with China.

Indonesia is resisting US trade deal demands that it fears would restrain its independence, particularly in critical minerals and energy that risk its relations with China and Russia, according to people familiar with the situation.

The shift has been turbocharged by tariffs of 20% imposed by Washington, said Phan Xuan Dung, a researcher at the ISEAS-Yusof Ishak Institute in Singapore. "Vietnamese officials were displeased by what they saw as punitive U.S. measures, and this pushed them to hedge by leaning economically further into China," he added.

Tariffs seem like holiday background noise, but Trump's 2026 trade decisions could move inflation, markets, and the U.S. economy in a big way.

Republican Sen. Dave McCormick (Pa.) is not fully on board with the Trump administration permitting Nvidia to sell its H200 chips in China. “I’m concerned. I’m not clear on why that is the right path for us,