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,

China's factory activity slowed at the start of the second quarter, with a sharp fall in new export orders and the resumption of employment declines, a private-sector survey showed on Wednesday.

The president’s taxes on imports seems likely to mean emptier shelves and higher prices, perhaps within weeks.

"You don't know whether or not China's going to eat it," Trump said of the potential for tariffs on Chinese goods to increase consumer prices.

Donald Trump says China will likely bear the brunt of his 145% tariff on the world’s second-largest economy. But prices from some of the most popular sellers of made-in-China goods already suggest US shoppers will be paying a major portion of the bill.