Chinese exporters are flooding global markets with excess products—but not the United States. With U.S. tariffs on Chinese goods still in place, companies in China are redirecting massive inventories originally meant for the U.S. to other parts of the world.

Countries across Asia, Africa, and Latin America are now experiencing a surge in imports of cars, toys, shoes, and other products—some at levels they haven’t seen in years.

This overflow of goods is expected to drive down prices globally. However, it’s also putting immense pressure on local manufacturers, many of whom struggle to compete with the scale and pricing of Chinese exports. Some local businesses may be forced to shut down.

Meanwhile, the Trump administration is reportedly on the verge of signing a new trade agreement with China. If the deal lowers tariffs, it could reopen the U.S. market to Chinese exporters and shift global trade flows once again.