China’s U.S. Exports Plunge Amid Tariff Tensions

Today at 9:12 am

3309 posts

China’s U.S. Exports Plunge Amid Tariff Tensions/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ China’s exports to the United States dropped sharply in April due to steep U.S. tariffs, but trade with other global partners surged. The shift highlights how tariffs are reshaping global supply chains and accelerating China’s pivot to regional trade blocs. Talks this weekend may ease tensions, but major reversals remain unlikely.

Delivery couriers sort out parcels for their customers underneath a tunnel during a rainy day in Beijing, Friday, May 9, 2025. (AP Photo/Andy Wong)

China Trade Shift Quick Looks

U.S. tariffs push China’s April exports to the U.S. down 21%.
Total Chinese exports rose 8.1% year-on-year in April.
U.S.-China trade surplus narrowed to $20.5 billion.
China’s imports from the U.S. dropped over 13%.
Tariff-driven supply chain shifts accelerate toward Asia and Latin America.
Exports to Vietnam, Thailand, and India saw double-digit growth.
Talks in Geneva this weekend may ease trade tensions.
Economists expect further U.S. export decline in coming months.
RCEP and Belt and Road countries now key trade partners.
Beijing unveils economic stimulus to offset trade war effects.

A cargo train moves past new cars waiting for shipment in a port, in Yantai in east China’s Shandong province on Wednesday, May 7, 2025. (Chinatopix via AP)

China’s U.S. Exports Plunge Amid Tariff Tensions

Deep Look

China’s U.S. Exports Plunge Amid Tariffs, Global Trade Realigns Toward Asia and Emerging Markets

BEIJING — China’s exports to the United States fell sharply in April, deepening a trade rift triggered by steep tariff hikes under President Donald Trump. At the same time, China’s global trade landscape is undergoing a dramatic realignment, with booming exports to Southeast Asia, Africa, and Latin America partially offsetting losses from the U.S. market.

According to customs data released Thursday, China’s exports to the U.S. plummeted by 21% year-over-year in April, reflecting the impact of new American tariffs, which now stand as high as 145% on most Chinese imports. China’s retaliatory tariffs of 125% on U.S. goods have also hurt inbound trade, with imports from the U.S. falling over 13% compared to last year.

Despite the plunge in U.S. trade, total Chinese exports rose 8.1% in April from a year earlier, surpassing economist forecasts of 2% growth. However, that was a slowdown from March’s 12.4% year-on-year surge, suggesting global demand may be cooling. Imports overall dipped 0.2%, reflecting domestic economic pressures.

China’s politically sensitive trade surplus with the U.S. fell to $20.5 billion in April, down from $27.2 billion the same month in 2024. Over the first four months of 2025, China’s exports to the U.S. fell 2.5%, while imports from the U.S. declined 4.7%, underlining how tariffs have strained one of the world’s most critical trade relationships.

The recent figures also highlight how China has successfully pivoted away from dependency on U.S. markets by deepening trade ties elsewhere. Notably, exports to the 10-member Association of Southeast Asian Nations (ASEAN) rose 11.5% year-to-date. Trade with Latin America matched that pace, while shipments to India and Africa grew by 16% and 15%, respectively.

Vietnam and Thailand have emerged as key trade partners amid broader supply chain shifts. Exports to Vietnam jumped 18% in April, while those to Thailand rose 20%—an indication that many companies, including Chinese manufacturers, are diversifying production bases to buffer against geopolitical risk.

Zichun Huang of Capital Economics cautioned that even with expanding trade elsewhere, China’s overall export momentum is unlikely to hold. “We still expect export growth to turn negative later this year,” Huang said, citing continued U.S. restrictions and a sluggish global economy.

The outlook may hinge, in part, on the outcome of a high-level meeting in Geneva this weekend. U.S. Treasury Secretary Scott Bessent and other senior American officials are set to meet their Chinese counterparts for the most serious talks since the latest tariff hikes. However, entrenched strategic differences and competing national interests could limit the chances for significant breakthroughs.

“Some tariffs may be eased,” Huang noted, “but a full reversal is very unlikely.”

President Trump has framed the tariffs as essential to correcting what he describes as decades of unfair trade practices. Critics argue they’ve instead disrupted global trade flows and burdened businesses and consumers with higher costs.

This weekend’s talks come as Beijing is scrambling to stabilize its own economy. Official data has shown a steep decline in shipping volumes and trade activity, prompting authorities to announce new measures aimed at boosting domestic demand and cushioning the blow from declining exports to the U.S.

While the United States remains China’s largest single-country export market—accounting for about 10% of all exports in April—regional trade blocs are gaining importance. The Regional Comprehensive Economic Partnership (RCEP), which includes 15 nations but excludes the U.S., now represents a larger share of China’s foreign trade. Exports to countries along China’s Belt and Road Initiative also continue to rise, reflecting Beijing’s long-term strategy to build alternative markets and reduce reliance on Western economies.

The trade shift has been years in the making, accelerated by the COVID-19 pandemic and subsequent supply chain disruptions that highlighted the dangers of over-concentration in one country. As companies worldwide rethink their production strategies, China’s export geography is diversifying rapidly.

Whether that diversification can fully cushion the impact of losing ground in the U.S. remains to be seen. For now, China’s export machine is adapting, but the road ahead is clouded by economic uncertainty, protectionist policies, and geopolitical rivalry.