China Maintains $1B Daily U.S. Exports, Strengthening Xi's Trade Leverage Amid Tariffs

Despite steep U.S. tariffs reaching up to 55%, Chinese exports to the United States continue to flow robustly at about $1 billion per day, even increasing in September compared to August. This resilience highlights China's dominance in critical sectors such as rare earths, electronics, and industrial materials, which are deeply integrated into global supply chains and difficult to replace quickly. Economists Chang Shu and David Qu from Bloomberg emphasize that this strong position gives China significant bargaining power in ongoing trade negotiations, particularly as the two countries prepare to extend a 90-day tariff truce expiring in November. Chinese exporters have also employed strategies like rerouting shipments through countries like Mexico and Vietnam to minimize tariff impacts, a practice difficult for U.S. Customs to fully police due to resource constraints. These sustained exports contribute to China's economic growth targets and widen the bilateral trade surplus, complicating U.S. efforts to leverage tariffs for quick concessions. Overall, China's manufacturing strength and strategic control over essential materials and technology inputs continue to challenge U.S. trade restrictions and influence the dynamics of the trade war under President Trump.