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US trade tensions hit China's export growth

Shakeel Sobhan with AP, AFP, Reuters
June 9, 2025

In May, China's exports to the US fell nearly 12% from April. The report of the slowdown comes just hours before another round of trade talks between US and Chinese officials in London.

Shipping container ship sails off
Analysts say China's strong trade figures in March and April can be attributed to a rush by exporters to ship goods ahead of anticipated tariff hikesImage: Yu Fangping/Avalon/photoshot/picture alliance

China's export growth slowed to a three-month low in May as shipments to the United States dropped following tariffs imposed by President Donald Trump, according to customs data released on Monday.

While exports rose 4.8% year-on-year, it was down from 8.1% in April, with shipments to the US falling almost 12% month-on-month.

The report of the slowdown comes just hours before another round of trade talks between US and Chinese officials in London.

In May, China exported $28.8 billion (€25.23 billion) worth of goods to the US, down from $33 billion in April.

Analysts say the strong trade figures in March and April can be attributed to a rush by exporters to ship goods ahead of anticipated tariff hikes.

At the same time, imports from the US also fell 7.4% to $10.8 billion.

Trump, Xi phone call signals thaw in ties

On Thursday, Trump said he had a "very good phone call" with China's President Xi Jinping, which "resulted in a very positive conclusion for both Countries."

The call comes amid a 90-day tariff truce that came into effect last month which paused a spiraling trade war between the world's two largest economies.

Trump has lowered his 145% tariffs on Chinese goods to 30% for 90 days to allow for talks while China also reduced its taxes on US goods from 125% to 10%.

Trade war still hurts US ports despite tariff relief

03:40

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Beijing braces for economic fallout

The China-US trade talks are happening as US policymakers have voiced frustration at China's stalling on export license approvals for rare earths and other elements needed in the high-tech, defense, and clean energy sectors.

China's government data also showed a fall in the producer price index, while consumer prices dipped.

Meanwhile, to cushion the economic blow, Beijing introduced new stimulus measures in May, including interest rate cuts.

Edited by: Kieran Burke