China’s exports to the U.S. fell by 33% month-over-month in August as the effects of the Trump administration’s tariffs have begun to have a noticeable impact on trade between the two countries. China’s total exports grew by 4.4% year-over-year in dollar terms, below the estimate of 5.0% and marking the slowest pace since February.
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“With the temporary boost from the U.S.-China trade truce fading and the U.S. raising tariffs on shipments rerouted via other countries, exports are likely to come under pressure in the near term,” said Zichun Huang, chief China economist at Capital Economics.
U.S.-China Set to Continue Trade Talks
Last month, President Trump extended a tariff pause with China for another 90 days until November 10. In the meantime, the two sides continue to negotiate the terms of a comprehensive trade deal, although no major developments have been announced in recent weeks except for a deal with Nvidia (NVDA) to share a portion of its revenue with the U.S. government on Chinese chip shipments.
The U.S. has also worked to block China’s strategy of shipping its products to other countries and then to the U.S., sidestepping tariffs in the process. Targeting this strategy, called transshipment, could further weigh on China’s exports.
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