No. of Recommendations: 13
China Exports to the US drop 21%, but their total exports soar to rest of Asia and Europe
China’s export growth rose even as shipments to the US slumped sharply in the first month after President Donald Trump hit its goods with tariffs above 100%, a boost for a domestic economy that’s been increasingly reliant on foreign demand.
Total exports expanded 8.1% last month, above the 2% increase forecast by economists. Imports fell 0.2%, leaving a trade surplus of $96 billion, according to data from the customs administration Friday.
Shipments to the US fell 21% after the imposition of tariffs in early April, while those to the 10 Southeast Asian nations in the Asean group rose 21% and exports to the European Union were up 8%.
The first official hard data after the trade war escalated captures only the initial damage from the prohibitive tariffs, with their effects likely to become more pronounced starting this month. The expectation of many analysts is that unless the levies are reduced, trade between the world’s two largest economies would eventually fall to negligible levels after reaching almost $690 billion last year, decimating industries and raising prices for companies and consumers.
Bloomberg
Yup, we have ‘em right where we want ‘em.
