Chinese Exports To US Fall 34% Amid Ongoing Tariff Dispute

Chinese exports to the United States have plummeted nearly 35% in May 2025 compared to the previous year, reflecting the significant impact of the Trump administration’s steep tariffs that reached up to 145%. This decline marks the steepest drop since early 2020 and occurred shortly after a brief 90-day trade truce between the two countries collapsed amid accusations of violations from both sides. While exports to the U.S. fell sharply, China’s overall exports grew modestly due to increased shipments to other countries like Vietnam, as companies reroute goods to circumvent tariffs. The U.S.-China trade deficit has narrowed substantially, with the deficit dropping to its lowest level since 2023, attributed largely to reduced imports from China under the higher tariff regime. However, these tariffs have disrupted supply chains and prompted U.S. companies to seek alternative sourcing options, raising concerns about higher costs and potential shortages. Despite these tensions, China remains a critical trading partner, but ongoing tariff policies and unresolved diplomatic negotiations continue to cloud the future of bilateral trade relations.