China's Exports Beat Expectations Despite Tariff Challenges

Updated: 09 May 25

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China's exports grew by 8.1% in April, outperforming economists' forecasts, while imports declined only slightly by 0.2%. This comes amid intensified trade tensions with the U.S., including high tariffs imposed by both nations. Talks between Chinese and U.S. officials in Geneva aim to ease the stalemate, though immediate breakthroughs appear unlikely. China's government continues to implement measures to stabilize economic growth amid weak domestic demand and ongoing global trade challenges.

April Trade Data Overview

China's exports surged by 8.1% year-on-year in April, significantly outperforming the 1.9% growth forecast by economists. This marks a deceleration from the 12.4% increase in March, which was driven by exporters rushing to ship goods before heightened U.S. tariffs took effect. On the import side, the decline narrowed to 0.2%, an improvement from the 4.3% drop recorded in March. Analysts had anticipated a steeper contraction of 5.9%. These figures reflect resilience in China’s trade performance amid global economic uncertainties and ongoing trade tensions with the United States.

Impact of U.S.-China Tariff War

The trade data highlights the continued strain of the U.S.-China tariff war on bilateral trade. U.S. tariffs of up to 145% on Chinese goods, coupled with China's retaliatory 125% duties on U.S. exports, have led to a 2.5% drop in Chinese exports to the U.S. and a 4.7% decline in imports from the U.S. However, these losses have been partly offset by robust export growth to other regions. Exports to Southeast Asia grew by 11.5%, while shipments to India and Africa surged by 16% and 15%, respectively. Diversification of trade partnerships is helping mitigate the negative impact of reduced U.S.-China trade volumes.

Economic Measures and Trade Talks

In response to the economic headwinds, Beijing has implemented a series of monetary stimulus measures, including liquidity injections and policy rate cuts, aimed at supporting domestic demand and cushioning the impact of tariffs. Meanwhile, trade officials from China and the U.S. are set to meet in Geneva to explore ways to resolve the tariff standoff. However, significant challenges remain, with both sides maintaining hardline positions on key issues. The outcome of these talks will be critical in shaping the trajectory of global trade relations and economic growth in the coming months.