Friday, 31 Oct 2025
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA
logo logo
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
  • 🔥
  • Trump
  • VIDEO
  • House
  • White
  • ScienceAlert
  • Trumps
  • Watch
  • man
  • Health
  • Season
Font ResizerAa
American FocusAmerican Focus
Search
  • World
  • Politics
  • Crime
  • Economy
  • Tech & Science
  • Sports
  • Entertainment
  • More
    • Education
    • Celebrities
    • Culture and Arts
    • Environment
    • Health and Wellness
    • Lifestyle
Follow US
© 2024 americanfocus.online – All Rights Reserved.
American Focus > Blog > Economy > China’s exports to US plunge as trade talks loom
Economy

China’s exports to US plunge as trade talks loom

Last updated: June 9, 2025 12:25 am
Share
China’s exports to US plunge as trade talks loom
SHARE

The impact of trade tensions between China and the US was highlighted last month as China’s exports to the US experienced a significant decline. According to Financial Times calculations based on official data, exports to the US fell by 34% year on year in US dollar terms, marking the largest drop since February 2020 and surpassing April’s 21% decline.

Trade has been a crucial driver of growth for China amidst a backdrop of a property slowdown. Despite the decline in exports to the US, overall exports increased by 4.8% year on year. The data underscores the effects of trade tensions between the two largest economies in the world.

As Chinese and US negotiators prepared to meet in London for trade talks, a telephone call between US President Donald Trump and Chinese President Xi Jinping took place last week. The two leaders agreed to a 90-day truce on May 12, which remains fragile due to a dispute over slow approval of rare earth shipments. China’s restrictions on rare earth exports, in which it holds a near monopoly, have demonstrated its leverage and compelled Trump to return to the negotiating table. However, analysts believe that US tariffs are taking a toll, as shown by the latest trade figures.

Lynn Song, chief China economist at ING, stated, “It’s likely that the May data continued to be weighed down by the peak tariff period. We expect that export growth to the US could recover in the coming months.” In addition to the export data, separate figures released on Monday revealed that China’s consumer prices in May decreased for the fourth consecutive month, while producer prices fell at their fastest rate in nearly two years.

See also  Elon Musk gets more bad news as rival launches the anti-Tesla

Nomura economists attributed the deeper factory price deflation to trade tensions, as manufacturers engage in intense price competition for export orders. The ongoing trade tensions have compounded pressures from a property slowdown that began in 2021. The persistent weak price growth and periods of deflation have raised concerns over consumer confidence, prompting calls for more stimulus from Beijing.

The People’s Bank of China recently announced cuts to key lending rates as part of a continuous easing strategy, which also included reductions in mortgage rates to support the housing sector. Zichun Huang, China economist at Capital Economics, noted that the trade data indicates US tariffs are impacting overall exports. She mentioned, “Early signs suggest that US demand for Chinese goods has recovered somewhat since the Geneva truce, which should ease the drag on exports in the near term. But it seems unlikely to us that tariffs will be reduced further and there is still a risk that they could be hiked again.”

In conclusion, while there may be some improvement in US demand for Chinese goods in the near future, the potential for further tariff hikes remains a concern. It is uncertain whether there will be a significant increase in the Consumer Price Index (CPI) given the soft domestic consumer sentiment and the potential deflationary pressure caused by tariffs.

TAGGED:ChinasexportsloomPlungeTalksTrade
Share This Article
Twitter Email Copy Link Print
Previous Article How Climate Change Will Impact Your Retirement Plans—2025 Update How Climate Change Will Impact Your Retirement Plans—2025 Update
Next Article Lionel Messi Fan Chastised By Cop After Rushing Soccer Star Lionel Messi Fan Chastised By Cop After Rushing Soccer Star
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Posts

In New York, Rashid Johnson Plants a Profound Solo Show in the Guggenheim Rotunda

The Solomon R. Guggenheim Museum is making a triumphant return to form with the exhibition…

April 18, 2025

What does it mean when an orca wants to share its lunch with you?

An orca attempting to share food with a researcher holding a cameraOrca Research Trust Orcas…

June 30, 2025

Stunning Direct Images of Alien Worlds Are Detailed Enough to Reveal Clouds : ScienceAlert

The new images captured by the James Webb Space Telescope (JWST) have provided us with…

June 10, 2025

Katy, Gayle, Lauren & Co Weightless in Space, on Video, on Blue Origin Voyage

The All-Female Blue Origin Mission: Girls Just Wanna Have Fun in Space 🚀 Published on…

April 14, 2025

These Freakish Ocean Creatures Can Combine as One When Injured : ScienceAlert

Comb Jellies Have Frankenstein-Like Ability to Fuse Together When Injured When injured, pairs of comb…

October 7, 2024

You Might Also Like

Fresnillo signs agreement to acquire Probe Gold for 8m
Economy

Fresnillo signs agreement to acquire Probe Gold for $558m

October 31, 2025
Market analysts react to Trump-Xi meet
Economy

Market analysts react to Trump-Xi meet

October 31, 2025
29 truck carrier files Chapter 11
Economy

29 truck carrier files Chapter 11

October 31, 2025
Trust Government Statistics, Not Government
Economy

Trust Government Statistics, Not Government

October 31, 2025
logo logo
Facebook Twitter Youtube

About US


Explore global affairs, political insights, and linguistic origins. Stay informed with our comprehensive coverage of world news, politics, and Lifestyle.

Top Categories
  • Crime
  • Environment
  • Sports
  • Tech and Science
Usefull Links
  • Contact
  • Privacy Policy
  • Terms & Conditions
  • DMCA

© 2024 americanfocus.online –  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?