In 2024, Chinese exports of trade goods to the United States amounted to about 438.95 billion U.S. dollars; a significant increase from 1985 levels, when imports from China amounted to about 3.86 billion U.S. dollars. U.S. exports to China Compared to U.S. imports from China, the value of U.S. exports to China in 2020 amounted to 427.23billion U.S. dollars. China is the United States’ largest trading partner, while China was the United States third largest goods export market. Some of the leading exports to China in the agricultural sector included soybeans, cotton, and pork products. Texas was the leading state that exported to China in 2020 based on total value of goods exports, at 16.9 billion U.S. dollars. U.S. - China trade war The trade war between the United States and China is an economic conflict between two of the world’s largest national economies. It started in 2018 when U.S. President Donald Trump started putting tariffs and trade barriers on China, with the intent to get China to conform to Trump’s wishes. President Trump claimed that China has unfair trade businesses. As a result of this trade war, it has caused a lot of tension between the U.S. and China. Nearly half of American companies impacted by the U.S.-China trade tariffs said that the trade war increased their cost of manufacturing. The healthcare product industry has suffered the most from the trade war in regards to reduced profits.

The Cutting Tool and Machine Tool Accessory Manufacturers industry has been continually challenged by rising Import penetration into the market, undermining industrial production growth from a range of downstream sectors. Even as engineering-heavy sectors like manufacturing, oil and gas expanded, the domestic production was challenged by a flood of lower coasts cutting tools from abroad, amplified by all the more by a strong dollar. These factors have challenged the industry's growth during the period, with industry revenue forecast to decline at a CAGR of 0.7% to $5.3 billion through the end of 2025, with a drop of 5.5% expected during the current year. The US dollar has remained strong during the period, making exports more expensive to key markets. This has hindered manufacturers, which rely on exports for nearly one-quarter of their annual revenue. Challenges have been compounded by import penetration, with accessories from Germany, China and Japan rising to fulfil nearly half of all domestic demand in 2025, a rapid increase from 2020, when imports accounted for just over one-third of domestic demand. The new round of tariffs instituted by the Trump administration is unlikely to reverse the competitive disadvantage of domestic manufacturers, while simultaneously increasing the cost of imported industrial materials like tungsten, cobalt and specialty steels. This has the potential to increase prices for cutting tool manufacturers, undercutting their profitability as they struggle to absorb higher production costs. In the coming years, cutting tool and machine tool accessory manufacturers will benefit from expanded industrial production, with renewed industrial activity from automotive, aerospace and general manufacturing markets lifting prospects. Despite this growth, lower operational costs in countries like China and Mexico will continue to prompt manufacturers to use offshore facilities, reducing domestic companies' ability to keep up with foreign competition. While the Trump administration’s tariffs remain subject to ongoing adjustments, the imposition of retaliatory tariffs could weaken the position of domestically produced cutting tools. Industry revenue is forecast to contract at a modest CAGR of 0.4% to $5.2 billion through the end of 2030.