China Exports Rise 5.8% June Surpassing Forecasts Amid Trade Truce

China's exports surged 5.8% in June 2025, surpassing expectations as a temporary tariff reprieve with the United States motivated businesses to accelerate shipments ahead of an August deadline. Imports rose 1.1%, marking the first growth this year despite sluggish domestic demand, resulting in a trade surplus of $115 billion for June. This export resilience stems in part from diversification into alternative markets like Southeast Asia and the European Union amid ongoing U.S. tariffs imposed under President Donald Trump's administration and retaliatory Chinese measures. Both nations recently reached a tentative trade truce, agreeing to ease some tariffs and export restrictions, including China resuming rare earth shipments and the U.S. relaxing controls on certain technologies. China's robust foreign trade performance in the first half of 2025 also reflects a 2.9% growth in combined imports and exports, with expanding trade relations under the Belt and Road Initiative and increased participation by foreign trade enterprises. Meanwhile, despite record high Asian exports, including from China, U.S. retail inventory growth has been modest, suggesting stronger-than-expected U.S. consumer demand is mitigating the impact of tariffs, though concerns about the long-term effects of high tariffs on Asian exports remain.