China Exports to US Drop 21% Amid Trade Talks, Surge to Asia Europe

In April, China's total exports rose 8.1%, surpassing expectations, despite a sharp 21% decline in shipments to the United States following the imposition of tariffs by the Trump administration. The tariffs on Chinese goods, reaching up to 145%, and retaliatory Chinese tariffs on US imports, have contributed to a significant slowdown in trade between the two largest economies, with imports from the US falling nearly 14%. While exports to the US slumped, China saw a surge in shipments to Southeast Asia and Europe, indicating a shift in global supply chains. Analysts warn that unless tariffs are reduced, trade between the US and China could collapse to negligible levels, adversely affecting industries and raising costs for consumers. US Treasury Secretary Scott Bessent, labeling the tariffs as "unsustainable," is scheduled to meet with Chinese officials to negotiate a path forward, though both sides remain entrenched in their positions. The initial trade data likely underrepresents the full impact of tariffs, which are expected to deepen in the coming months, potentially leading to negative export growth to the US later this year.