The roughly -3% decline of the S&P 500 Index this past Friday was a sharp reminder that the trade war drama of 2025 is far from over. For better or worse the US and China dominate global trade, accounting for close to 45% of global GDP, so it is imperative that these intricately linked economies thrive. While the US consumer drives global growth, China has demonstrated that they have the ability to implement leverage as well and are more than willing to use it. Rare earth metals and soybeans are the clearest examples, but as the chart from The Economist shows, controls are being utilized across many areas.
October 13, 2025
The roughly -3% decline of the S&P 500 Index this past Friday was a sharp reminder that the trade war drama of 2025 is far from over. For better or worse the US and China dominate global trade, accounting for close to 45% of global GDP, so it is imperative that these intricately linked economies thrive. While the US consumer drives global growth, China has demonstrated that they have the ability to implement leverage as well and are more than willing to use it. Rare earth metals and soybeans are the clearest examples, but as the chart from The Economist shows, controls are being utilized across many areas.