The myth of 'the world cheating America'

Senior US officials have long claimed that countries are "cheating" America through so-called unfair trade practices, supposedly leaving Americans worse off. This narrative has been used to justify its aggressive policies like the sweeping "Liberation Day" tariffs.

But the facts tell a different story. As highlighted in a recent Times of India report, the US was neither cheated nor beaten by the world, rather, it is growing wealthier than ever. The real pain felt by ordinary Americans stems not from globalization, but from the deepening inequality within the US itself.

Richer than the rest

In 1991, G7 countries were roughly on equal economic footing, with similar per capita GDP. Today, in 2025, the US has surged ahead, nearly doubling its per capita GDP from $50,000 in 1991 to around $90,000, while the rest of the G7 countries lags far behind, averaging only 60 percent of the US level. Japan and Italy have fallen even further behind, with per capita GDP below half of the average American earnings.

G6 on decline

Against the surging US economy, all other G7 countries have seen their relative economic size diminish dramatically since 1991. According to the report, Japan experienced the sharpest decline, with its GDP falling from 59.2 percent of the US level to approximately 14.5 percent. Germany's economy also shrunk relative to the US, dropping from 30.6 percent to 16.2 percent, as did the UK, declining from 20.3 percent to 12.3 percent.

Global export powerhouse

Beyond its vast domestic market, the US remains one of the world's top exporters. Its share of G7's total exports expanded from 27.1 percent in 1996 to 32.1 percent in 2023, outpacing all other G7 countries. Germany, the second-largest exporter in the group, was the only other G7 country to record a notable increase, whereas Japan, France and Italy witnessed a fall in export over the same period.

Worsening domestic inequality

Among G7 members, the US saw the highest increase in income inequality. According to the report, the share of pre-tax income claimed by the top 1 percent jumped from 13.7 percent in 1991 to 20.7 percent in 2023. This growing disparity has fueled domestic right-wing populism, as many people feel betrayed by the elites.

Facts over rhetoric

The conclusion of the report is clear: the US has bested its G7 peers in both economic performance and export growth. However, rather than addressing real domestic issues, the US has chosen to wage trade wars. These self-serving tariffs threaten the global economic order while doing nothing to help the US population.

The world must reject this zero-sum game. If the US continues to sabotage multilateral trade — despite being one of its biggest beneficiaries — the international community must respond with a united stance and determined actions.

The author is a Chinese observer of international affairs. The views don't necessarily reflect those of China Daily.

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