China's exports rise in June; companies rush order to beat Donald Trump's tariff deadline

Time of India

a day ago

(Representative AI image)
China's exports grew at a faster pace in June, boosted by a temporary easing of US tariffs that encouraged a surge in orders before a looming August deadline.
According to customs data released Monday, exports rose 5.8% year-on-year, up from May's 4.8% growth, while imports posted their first increase this year, rising 1.1%.
The rebound followed a partial reprieve in US tariffs after President Donald Trump and Chinese officials agreed to resume talks, prompting companies to rush orders.
Although exports to the US were still down 16% year-on-year, the decline was narrower than the 34.5% plunge in May, according to AP.
Analysts say the temporary boost in trade may help support China's economic growth for the April–June quarter, with official GDP figures expected on Tuesday.
But the long-term outlook remains unstable.
"Tariffs are likely to remain high and Chinese manufacturers face growing constraints on their ability to rapidly expand global market share by slashing prices," Zichun Huang of Capital Economics, said in a report.
"We therefore expect export growth to slow over the coming quarters, weighing on economic growth," Huang added.
Despite the ongoing trade war with the US, China's overall trade activity continued to expand.
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Total trade in the first six months of 2025 crossed 20 trillion yuan ($2.8 trillion), with a trade surplus of $586 billion. This suggests that Chinese exporters have been diversifying to offset US losses.
Exports to Southeast Asia rose 13% in the first half of 2025. Shipments to Thailand grew 22%, Vietnam 20%, and India over 18%. Trade with the European Union also climbed 6.6% year-on-year during the same period.
But not all sectors performed well.
Auto exports slumped nearly 38% after the EU imposed steep tariffs on Chinese electric vehicles. Shipments of auto parts fell more than 23%.
Meanwhile, exports of rare earth metals rose 32% in June from May levels, likely reflecting progress in bilateral talks to ease restrictions on the supply of critical minerals.
China's crude oil imports also rebounded last month, reaching their highest daily average since August 2023, driven by increased refinery output from suppliers like Saudi Arabia and Iran.
Iron ore imports grew 8% month-on-month, while soybean imports hit a record high for June, led by increased purchases from Brazil, China's top supplier amid US sanctions, Reuters reported.
With Trump ramping up global tariffs including a 40% duty on transshipments through Vietnam and a 10% threat on imports from BRICS nations, Beijing's export strategies may face more challenges ahead.
However, talks between Washington and Beijing remain fragile, as with no major breakthrough in preliminary negotiations, uncertainty remains high. The White House has warned that tariffs could rise again, up to 30%, pending an August 12 deadline if a broader deal isn't reached.
Until then, exporters remain in limbo as risks continue to mount in the escalating global trade war.
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