China's exports up 4.4% to $321.8B in August, imports up 1.3% to $219.5B
China's export and import growth rates slowed in August due to uncertainty caused by the failure to reach an agreement amid escalating trade tensions with the US over reciprocal tariffs.
According to data from China's General Administration of Customs, exports rose 4.4% to $321.8 billion in August compared to the same period last year.
The growth in exports fell short of July's 7.2% increase, as trade uncertainty caused by reciprocal tariff increases with the US persisted.
Imports increased by 1.3% year on year to $219.5 billion but fell short of the 4.1% increase in July.
The country's foreign trade surplus in August was $102.3 billion.
- China's US exports fall at a faster pace
China's exports to the US fell by 21.7% in July and 33.1% in August, recording a faster decline.
During this period, China's exports to the Association of Southeast Asian Nations (ASEAN) countries, its largest trading partner, increased by 22.5%, and to European Union countries by 10.4%.
China's exports rose 2.3% in January and February, then jumped 12.4% in March due to advance shipments made in anticipation of further US tariff hikes.
The country's exports rose 8.1% in April, signaling resilience to external shocks despite escalating tensions over reciprocal tariff increases.
The pace of export growth was 4.8% in May, 5.8% in June, and 7.2% in July.
China's imports fell by 8.4% in January and February, 4.3% in March, 0.2% in April, and 3.4% in May, before rising by 1.1% in June and 4.1% in July.
- China-US tit-for-tat tariff
On April 2, US President Donald Trump announced additional customs duties on trading partners, including China.
With China's retaliation, the tariff dispute between the two countries eventually led the US to raise its tariffs on China to 145%, while China raised its tariffs on the US to 125%.
Following the escalation of trade tensions, US and Chinese officials met in Geneva, Switzerland, on May 10-11 to negotiate tariffs, and they agreed to reduce tariffs for 90 days.
After the meeting, it was agreed that, beginning May 14, the US would reduce its customs duty on Chinese goods from 145% to 30% for 90 days, while China would reduce its duty on US goods from 125% to 10%.
Later, on June 9-10, the two countries' delegations met in London for a new round of negotiations and announced that they had reached an agreement on a framework of measures to carry out the consensus reached at previous meetings.
The delegations agreed to extend the temporary tariff agreement reached during the new round of negotiations held in Stockholm, Sweden, on July 28-29 for another 90 days, beginning on August 12.
