China's June exports fall after US tariff hike, imports shrink

Lloyd Doyle
July 13, 2019

China's export growth slowed in June and imports shrank more than expected, as the continuing trade war with the US and a global slowdown hurt trade.

Exports fell 1.3 percent from a year earlier, not as bad as the 2 percent drop analysts had expected but reversing a surprise gain in May, customs data showed on Friday.

Imports from the USA slumped 31.4 per cent from a year earlier; exports to the US fell 7.8 per cent.

US President Donald Trump and Chinese President Xi Jinping held various trade talks during the G20 summit.

Mr Hu Xijin, editor-in-chief of the state-owned Global Times newspaper tweeted late Thursday that the "achievement of Osaka summit is a China-US consensus, not a unilateral commitment China made to the US".

Envoys talked by phone Tuesday in their first contact since Trump and Xi met in Japan, the Chinese Commerce Ministry said. -China tariff war continued to grow in May 2019, with the gap between the pre-trade war trend and the trailing twelve-month average of the total valuation of goods and services directly traded between the two nations widening to $8.3 billion for the month.

Trump did not specifically say he will re-escalate the trade war.

China's slowing economy gives President Xi Jinping little room to fight back forcefully against the U.S. - which is using tariffs as leverage to try to force Beijing into opening up its economy. Trump said he will ease up the ban on Huawei and talks between Beijing and Washington will resume.

Trump accused Beijing on Thursday of backsliding on promises to buy more American farm goods. Altogether the two giants have slapped each other with punitive tariffs covering more than $360 billion in two-way trade, damaging manufacturers on both sides of the Pacific.

But data released on Thursday (July 11) by the US Department of Agriculture indicate that China actually slowed its purchases of American agriculture products following the G-20 meeting.

China slapped a 25 per cent tariff on USA soybeans last July as part of a trade war between the world's two largest economies, bringing imports of United States beans to a halt until the two countries agreed to a truce on last December.

Other reports by Iphone Fresh

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