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China exports beat expectations despite slump in trade with US Trump floats cutting Chinese tariffs from 145% to 80% before weekend talks
(about 8 hours later)
April trade data comes the day before representatives from Washington and Beijing were set to meet to discuss Trump’s tariffs Meeting aimed at de-escalating trade war after Chinese exports beat expectations despite slump in trade
Chinese trade with the United States slumped in April even as its total exports beat forecasts, official figures show, as trade representatives from both nations prepared to meet this weekend in the midst of a gruelling trade war between the superpower rivals. Donald Trump has floated cutting tariffs on China from 145% to 80% before a weekend meeting as he looks to de-escalate the trade war.
Exports to the United States – one of China’s top trading partners – fell 17.6% in April, data showed. Against that backdrop, analysts polled by Bloomberg had expected exports to rise just 2% year-on-year last month. However they beat expectations, coming in at 8.1%. Top US officials are expected to meet a high-level Chinese delegation this weekend in Switzerland in the first significant talks between the two nations since Trump provoked a trade war with stiff tariffs on imports.
The US president wrote “80% Tariff on China seems right! Up to Scott B” on his social media account on Friday morning, referring to Scott Bessent, the treasury secretary.
Bessent and Jamieson Greer, the US trade representative, will meet their counterparts in Geneva in the most senior known conversations between the two countries in months, the Trump administration announced this week. It comes amid growing US market concern over the impact of the tariffs on the prices and supply of consumer goods.
No country has been hit harder by Trump’s trade war than China, the world’s biggest exporter and second largest economy. When the US president announced his “liberation day” tariffs on 2 April, China retaliated with tariffs of its own, a move that Trump viewed as demonstrating a lack of respect. The tariffs on each other’s goods have been mounting since then, with the US tariffs against China now at 145% and China tariffs on the US at 125%.
Chinese trade with the US slumped in April even as its total exports beat forecasts, official figures showed, as trade representatives from both nations prepared to meet this weekend in the midst of a gruelling trade war between the superpower rivals.
Exports to the US – one of China’s top trading partners – fell 17.6% in April, data showed. Against that backdrop, analysts polled by Bloomberg had expected exports to rise just 2% year-on-year last month. However, they beat expectations, coming in at 8.1%.
“The damage of the US tariffs has not shown up in the trade data in April,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.“The damage of the US tariffs has not shown up in the trade data in April,” Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, said in a note.
“This may be partly due to transshipment through other countries, and partly because of trade contracts that were signed before the tariffs were announced,” he added.“This may be partly due to transshipment through other countries, and partly because of trade contracts that were signed before the tariffs were announced,” he added.
“I expect trade data will weaken in the next few months gradually.”“I expect trade data will weaken in the next few months gradually.”
Trade between the world’s two largest economies has slowed considerably since US president Donald Trump imposed various rounds of tariffs on China. Levies on many Chinese products now reach as high as 145% – with cumulative duties on some goods soaring to a staggering 245%. Trade between the world’s two largest economies has slowed considerably since Trump’s rounds of tariffs on China. Levies on many Chinese products are now as high as 145%, with cumulative duties on some goods a staggering 245%.
Beijing has responded with 125% tariffs on imports of US goods, along with other measures targeting American firms.Beijing has responded with 125% tariffs on imports of US goods, along with other measures targeting American firms.
US treasury secretary Scott Bessent and trade representative Jamieson Greer are set to meet Chinese vice premier He Lifeng in Switzerland on Saturday and Sunday, marking the first talks between the superpowers since Trump unveiled his tariffs. Bessent and the trade representative Jamieson Greer are due to meet the Chinese vice-premier, He Lifeng, in Switzerland on Saturday and Sunday, marking the first talks between the superpowers since Trump unveiled his tariffs.
On Thursday, Britain became the first to announce a deal with the US that reduces tariffs on British cars and lifts them on steel and aluminium, while in return Britain will open up markets to US beef and other farm products. On Thursday, Britain became the first to announce a deal with the US that reduces tariffs on British cars and lifts them on steel and aluminium, while, in return, Britain will open up markets to US beef and other farm products.
But analysts said traders were more excited about the Republican leader’s comments on the upcoming talks with China in which he hinted at an easing of the stiff measures aimed at the world’s number two economy. But analysts said traders were more excited about the Republican leader’s comments on the forthcoming talks with China in which he hinted at easing the stiff measures aimed at the world’s No 2 economy.
Trump told reporters that he thought the negotiations would be “substantive” and when asked if reducing the levies was a possibility, he said “it could be”. Trump told reporters that he thought the negotiations would be “substantive”, and when asked if reducing the levies was a possibility he said “it could be”.
“We’re going to see. Right now you can’t get any higher. It’s at 145% so we know it’s coming down. I think we’re going to have a very good relationship.”“We’re going to see. Right now you can’t get any higher. It’s at 145% so we know it’s coming down. I think we’re going to have a very good relationship.”
Speaking on Friday, deputy foreign minister, Hua Chunying, said China had full confidence in its ability to manage US trade issues. Speaking on Friday, the deputy foreign minister, Hua Chunying, said China had full confidence in its ability to manage US trade issues.
“We have no fear,” Hua told reporters, adding that the trade policy of the US administration could be sustained. “We have no fear,” Hua told reporters, adding that the trade policy of the US administration could be sustained. “We do not want any kind of war with any country. But we have to face up to the reality. As you can see, people have full confidence in our capability to overcome all the difficulties … Ordinary people in the US already feel suffering from the tariff war.”
“We do not want any kind of war with any country. But we have to face up to the reality. As you can see, people have full confidence in our capability to overcome all the difficulties … Ordinary people in the US already feel suffering from the tariff war.” April’s economic data showed that China’s imports beat expectations, dropping 0.2%, compared with the 6% slide analysts had estimated. Purchases from overseas were being closely watched as a gauge of consumer demand in China, which has remained sluggish.
April’s economic data also showed that China’s imports also beat expectations, dropping 0.2%, compared with the 6% slide analysts had estimated. Purchases from overseas were also being closely watched as a key gauge of consumer demand in China, which has remained sluggish. With Reuters, Associated Press and Agence France-Presse
With Reuters and Agence France-Presse