Impact of Trump's Trade War: Decline in Market Share of U.S. Brands in China, Nissan Increases Production Capacity in the U.S., Chinese Factory Workers Respond on TikTok

In April 2025, the Trump administration imposed a 245% tariff on Chinese products and a 25% tariff on imported cars, affecting the global automotive industry. American brands experienced a decline in market share in China, while Chinese brands gained prominence. Nissan announced plans to increase production capacity at its U.S. factories to cope with the tariffs. The former deputy governor of Italy's central bank criticized U.S. policies for disrupting the economic order and urged the EU to increase public spending. Chinese factory workers marketed products to American consumers through TikTok in an attempt to bypass tariffs and challenge Trump's policies.

American Brands' Market Share Declines in China, Rise of Chinese Local Brands

According to reports from The Wall Street Journal and Cnyes.com, the Trump administration's imposition of tariffs as high as 25% on Chinese goods has posed severe challenges for American brands operating in China. Nike's revenue in China from December 2024 to February 2025 decreased by 17% year-on-year, and Tesla's sales in China last month also fell by 12%. Apple and Starbucks have also issued warnings to investors, indicating a slowdown in sales growth in the Chinese market.

Meanwhile, Chinese local brands are rapidly filling the market gap. Brands like Luckin Coffee, Huawei, Anta, and Mixue Bingcheng are becoming increasingly popular among Chinese consumers, gradually replacing the dominance of American brands. Chinese supermarket chain Yonghui Superstores has even opened a "fast track" to help Chinese manufacturers whose exports are blocked to sell products and enhance brand awareness.

Nissan Accelerates U.S. Production Capacity to Counter 25% Auto Tariff

On April 3, 2025, Trump signed an executive order imposing a 25% tariff on all imported cars, with additional tariffs on some auto parts to be imposed on May 3. Christian Meunier, Chairman of Nissan North America, stated that the company will "maximize the use of" the production capacity of its Smyrna, Tennessee plant. The plant covers 6 million square feet and has an annual capacity of 640,000 vehicles, currently producing about 314,500 vehicles in a two-shift system, leaving room for expansion.

Meunier noted that Nissan will adjust the import ratio of vehicles from Mexico and Japan and is considering launching new models within the next two years to strengthen its U.S. market presence. Although Nissan has not reduced its production capacity in Mexico, it has stopped accepting orders for two Infiniti SUV models from Mexico and has lowered the prices of the Rogue and Pathfinder to maintain sales momentum.

European Officials Criticize Tariff Policy, Call for Increased Public Spending

In response to the Trump administration's trade protectionism, European officials and economists have expressed strong disapproval. Former Deputy Governor of the Bank of Italy, Pierluigi Ciocca, pointed out that Trump's interference with the Federal Reserve and tariff policies have caused severe damage to the global economy. He criticized the U.S. for failing to enhance productivity through technological innovation and instead relying on tariffs to cover up structural issues.

Ciocca and economist Federico Carli both believe that the EU should take this opportunity to break the restrictions on public investment, boosting domestic demand and economic growth. Carli noted that European companies will seek alternative markets, such as India, to cope with the U.S.-China trade tensions. The EU has also launched retaliatory tariffs worth 18 billion euros against U.S. steel, aluminum, and auto tariffs, and has proposed a "zero tariff, zero non-tariff barriers" negotiation plan, hoping to restart dialogue with the U.S.

Chinese Factory Workers Challenge U.S. Tariff Policy via TikTok

On the digital battlefield, Chinese factory workers and suppliers are launching a "counterattack" against American consumers through TikTok. Several videos show Chinese factory workers introducing their products in English, emphasizing prices far below U.S. retail prices. For example, one blogger showcased yoga pants from a Lululemon contract manufacturing factory, claiming the factory price is only $5 to $6, much lower than the hundred-dollar price in the U.S. market.

These videos encourage American consumers to bypass middlemen and tariffs by ordering directly from Chinese factories. Some videos have garnered over 8 million views and hundreds of thousands of likes. According to Alex Goldenberg, an advisor at the Rutgers University Network Contagion Research Institute, this is a "planned action" aimed at undermining Trump's tariff policy and promoting the price and quality advantages of Chinese manufacturing.

Additionally, the download volume of cross-border e-commerce platforms such as DHgate has surged by 940%, indicating that the "factory-to-consumer" model is on the rise, potentially reshaping the global supply chain structure.

Impact of Trump's Trade War: Decline in Market Share of U.S. Brands in China, Nissan Increases Production Capacity in the U.S., Chinese Factory Workers Respond on TikTok

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