China Redirects Exports After US Tariff Surge

China's exports grew 8.1% year-on-year in April, outperforming expectations despite US tariffs rising to as high as 145% and causing direct shipments to the US to plunge by 17.6% month-on-month and 21% year-on-year. In response, China redirected more exports to Southeast Asia and Europe, where shipments increased substantially. Imports into China edged down 0.2%, contributing to a widening trade surplus and concerns over growing imbalances with the US. Major shipping firms, including Maersk, reported a 30-40% drop in US-China container volumes, highlighting the impact of shifting global supply chains. Economic strain has been felt in both countries, with Chinese factory activity contracting and US growth slowing. These developments have prompted both nations to pursue high-level trade talks in Geneva to address escalating tensions.