The pace of Chinese export growth slowed sharply in August, Beijing’s customs agency said, as U.S. President Donald Trump‘s tariffs squeezed outgoing trade.
Chinese goods exports reached $321.8 billion in August, a 4.4 percent increase compared to the same month last year. That was down from a 7.2 percent jump in July. Meanwhile, imports totaled $219.5 billion, a 1.8 percent rise.
Trump blew open a trade war with China shortly after retaking office, accusing it of abusive practices that hurt American businesses, an economic conflict that took a big toll on markets and threatened to plunge the U.S. into a recession.
After exchanging sky-high tariffs and other tit-for-tat countermeasures, the two sides entered trade talks as tensions cooled, soothing markets. But negotiations are ongoing, and a full and comprehensive trade deal is yet to materialize.
The latest Chinese data shows the power of Trump’s tariffs as an economic weapon against U.S. competitors and rivals—though they also come at substantial domestic cost, raising the prices of imports for consumers and businesses.
As it stands, Trump has capped additional tariffs on imports from China at 30 percent, with trade negotiations ongoing. China’s tariff on U.S. goods is 10 percent. There are exceptions, however, such as the higher Section 232 tariffs on key goods and industries.
The tariffs from both sides and the possibility that they could be raised again are having an impact on two-way trade.
Chinese exports to the U.S. plunged 33 percent in August to $47.3 billion, while its imports from the U.S. dropped 16 percent to $13.4 billion.
Overall, China’s exports grew at the slowest pace since the January-February period, when they rose just 2.3 percent. The first two months of the year are reported together to smooth out distortions from the long Lunar New Year break.
This is a developing article. Updates to follow.
This article uses reporting by The Associated Press.
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