This article speaks to an established interest of International Relations scholars in the construction of the ‘China threat’ in US political discourse. We advance recent works which have argued that the rise of China has contributed to the success of populism in the United States and Western liberal democracies more widely. Specifically, we transpose the concept of the ‘populism of the privileged’ to the international realm to understand how narratives of status loss nurture perceptions of collective trauma and victimhood. We argue that the concept helps explain why Trump’s anti-China populism is centred on the counterintuitive articulation of an American underdog identity at the domestic and international levels. It sheds light on why populist narratives of unjust suffering have grip even if supporters stem from comparatively privileged groups. Victimhood-centric narratives are always relational and, as we show, the imaginary of lost status is a powerful device in the populist toolbox.