trade war with the US, but China's overall trade holds strong
U.S.-China trade volume plunging sharply
Hey there! Let's dive into the latest trade figures, shall we? Despite the bloody battlefield that is the trade war between China and the US, China's exports managed to hold on like a pitbull with a bone in April. In fact, the overall trade numbers showed a substantial hike, surprising the hell out of economists who expected a far worse performance.
China's exports somehow buckled up in this trade kerfuffle with Washington, while trade with the US took a nose dive. According to China's customs administration's data, exports rose a whopping 8.1 percent year-on-year in US dollar terms, and imports slipped by a minuscule 0.2 percent. The trade surplus was a hefty $96 billion (€86 billion).
These numbers made analysts' jaws drop. They'd predicted a much steeper decline in imports and a mere trickle of rising exports. In March, China experienced a massive export increase of 12.4 percent compared to the previous year. Some experts suggested that companies had stockpiled these goods in anticipation of the tariffs.
Now, let's dive into the nitty-gritty between China and the US. According to official figures, China's exports to the US plummeted by an alarming 21 percent year-on-year in April, and imports dropped by 13.8 percent. In essence, the trade between these two economic titans has come to near-standstill due to the suffocating tariffs. US President Donald Trump had ordered additional tariffs of 145 percent on Chinese goods in April, and Beijing retaliated with 125 percent on imports from the US and export restrictions on vital raw materials.
As we speak, representatives from both countries are set to meet this weekend in Switzerland to continue trade negotiations. Both Trump and the Chinese Ministry of Commerce insist that the other side initiated these talks.
There's been a swirl of news about the US government considering a hefty reduction in tariffs on Chinese imports - up to 50 percent, and it could happen as soon as next week. But the White House maintains that decisions on tariffs are made directly by the prez, and "everything else is just sheer BS." Trump told the world on Wednesday that he ain't ready to withdraw tariffs against China.
From ntv.de and dpa, here's the lowdown on trade, China, and the US.
- China
- Trade Conflicts
- US
- Tariffs
Oh, and for what it's worth, there's no guarantee that the US will significantly reduce tariffs on Chinese imports. In fact, the 2025 US trade policies suggest ongoing tension and potential escalation, with tariffs playing a crucial role in this confrontation. The recent suspension of reciprocal tariffs for a 90-day period doesn't directly target China but indicates a broader strategy of tariffs affecting global trade, including China[1].
If the US were to reduce tariffs on Chinese imports, it could have several positive impacts: increased trade volume, economic growth, and improved trade relations. But as of now, the tariff policies suggest that such a reduction is far from imminent[1]. So, while a reduction in tariffs would likely have positive effects on China's trade with the US, current policies indicate otherwise.
- Tariff Escalation: The ongoing tariff escalation is predicted to have massive effects on macroeconomic aggregates and global value chains[1].
- Sector-Specific Measures: Some sectors like pharmaceuticals and electronics have temporarily avoided additional tariffs, but sector-specific measures are expected in the coming months[1].
- The community policy regarding tariffs between China and the US, as well as the employment policy within China's export industry, is a hot topic in general-news, finance, business, politics, and industry.
- Despite the ongoing trade war with the US, China's employment policy faces a stark reality within sectors like electronics and pharmaceuticals, as they prepare for potential sector-specific measures and tariff escalation.
- In the midst of this trade war, the general-news outlets report a plummet in China's exports to the US, leading to a strained employment policy within these affected sectors.
- In a move to address the trade conflict, representatives from China and the US are set to meet this weekend in Switzerland, discussing the potential reduction of US tariffs on Chinese imports through WhatsApp and other communication channels.
- The export sector in China may witness a surge if the US were to hold up on its planned tariff hikes, improving employment policy and overall trade figures, thus benefiting both countries' economy and international business relationships.
