Whenever the US initiates a trade war against other countries, supporters often argue that America, as the world's largest consumer market, is an economic powerhouse that no one can afford to offend. But is this really the case? Why is the "world's number one" market struggling to afford even basic goods like eggs? A deeper dive into the reality behind America's US$18.8 trillion "consumption myth" reveals the underlying truth about US consumer spending.
According to data from the US Bureau of Labor Statistics, Americans spent US$18.8 trillion in 2023. However, US$12.7 trillion of this was spent on services like healthcare, rent, education, and legal fees. Only US$6.1 trillion—or less than one-third—was used to purchase goods. Following the imposition of tariffs by US President Donald Trump, Chinese e-commerce platforms like Dunhuang Net climbed to the top of US app download charts. A "consumption comparison" between Chinese and American netizens revealed that items like a "US$1,000 handbag" or "US$100 leggings" in the US could be purchased in China for just a few dollars. The so-called "high consumption" in the US doesn't mean Americans consume more—it means they pay far more for the same goods.
As the inflated consumption figures are debunked, the decline of US industries becomes increasingly apparent. The Trump administration, known for accusing others of having "no cards to play," appears to be struggling with its own lack of leverage.
Reports from several international media outlets indicate that since Jan. 16, 2025, Chinese companies have ceased purchasing US soybeans, and since early February, liquefied natural gas. These strategic moves were in place long before the trade war began, ensuring China's food and energy supplies remain unaffected.
In contrast, the US was woefully unprepared for its own tariff war, which has disrupted its stock markets, bond markets, and even supermarket shelves. A week after Trump announced "reciprocal tariffs," US imports plummeted by 64%. A real-time global shipping map shows that America's shipping density has dropped significantly, now lagging behind China and Europe.
While the US continues to inflate its consumption figures with healthcare bills and legal fees, China is supporting global trade with tangible goods, bolstering its own economy and global consumption levels. The so-called "US$18.8 trillion consumer market" is nothing more than the "emperor's new clothes." The real trump card lies with those who can keep factories profitable, ports bustling, and agricultural products in demand.
(Source: CCTV)
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