A Surprisingly Steady Trade Performance from China Amidst US Trade War
U.S.-China Trade Nosediving Unexpectedly
In an unexpected turn of events, China's trade performance displayed resilience against the ongoing trade feud with the US in April. However, trade with the US took a nose dive. According to Chinese customs data, exports increased by a staggering 8.1% year-on-year in US dollars, while imports dipped slightly by 0.2%. This resulted in a trade surplus of approximately $96 billion (€86 billion).
Analysts had predicted a more pronounced decline in imports and a modest increase in exports. In March, China recorded a notable increase in exports of 12.4% compared to the previous year, suggesting that companies may have stockpiled inventories ahead of impending tariffs.
Behind the Scenes: The Financial Markets' Furrows
Official figures indicate that China's exports to the US dropped by 21% year-on-year in April, while imports fell by 13.8%. The trade between these two economic titans has slowed considerably due to hefty tariffs on goods. US President Donald Trump ordered an additional 145% tariff on Chinese goods in April, to which China responded with 125% tariffs on US imports and export restrictions on key raw materials.
Negotiations on the Horizon: A reunification in Switzerland?
Trade representatives from both countries will convene in Switzerland this weekend for a fresh round of trade negotiations. Both parties claim the other initiated these talks.
While the US government is rumored to be considering a reduction of tariffs on Chinese imports by more than half, according to unnamed sources, the White House has only confirmed that tariff decisions are made directly by President Donald Trump. No official statement has been made regarding any imminent tariff reductions[2]. Despite this, President Trump stated on Wednesday that he was unwilling to remove the tariffs against China yet.
Source: ntv.de, chl/dpa
- China
- Trade Conflicts
- US
- Tariffs
[1] Despite the speculation of tariff reductions, as of May 2025, the US government has not significantly reduced tariffs on Chinese imports. The current US tariff policy toward China reflects continued high tariff levels rather than a move toward significant reductions. Trade between the US and China faces the risk of near collapse under this tariff escalation regime, and the structure of global value chains is expected to be heavily affected by these US trade measures.
[2] Though unconfirmed, reports suggest the US may reduce tariffs on Chinese imports by more than half as early as next week. However, the White House has only stated that decisions on tariffs are made directly by the president, emphasizing that any tariff reduction is yet to be officially confirmed.
- The community policy in Beijing might consider addressing the issue of plummeting exports to the US, given the recent trade negotiations on the horizon.
- In contrast to the employment policy focused on domestic growth, the ongoing trade conflict with the US has led to a decrease in Chinese employment, particularly in industries reliant on exports.
- The sports industry, which is heavily reliant on imports, has also been affected by the trade war, with whatsapp groups used by sports organizations to discuss potential supply chain disruptions.
