China exports to US sink to three-month low

Exports of goods from China to the US slowed to a three-month low in May 2025 as a range of new tariffs introduces by US president Donald Trump continue to deeply impact global trade.

Newly released figures show China’s exports to the US in May 2025 decreased by 34.5% year-over-year, representing the sharpest drop since the Covid-19 pandemic and well exceeding the 21% drop seen in April.

The value of those shipments, however, grew by 4.8% YoY, to US$316.2bn, indicating a continuing shift to higher value goods that are better able to absorb tariff impacts, as well as goods unable to be sourced elsewhere.

By comparison, May exports from China to the EU grew by 12% YoY while exports to members of the Association of Southeast Asian Nations – China’s largest trading partner – grew by 14.84%.

Overall, China’s trade surplus stood at $103.2bn in May, up from $96.18bn in April.

Decreases were seen in traffic shipping in both directions, as May imports of US goods into China decreased by 18.1% YoY, deepening from a 13.8% decrease in April.

While exporters received a temporary respite in May after the US and China agreed to a 90-day tariff suspension while pursuing a long-term agreement, the impact of that is not expected to be seen until June figures are released one month from now. Front-loading of exports following the tariff suspension announcement is expected to lead to increased activity in June, according to Chinese economists like Zhang Zhiwei, president of Pinpoint Asset Management, and Huang Zichun, China economist with Capital Economics, but that may prove short-lived.

Delegates from the US and China governments are scheduled to meet in London this week to continue discussions aimed at resolving the current trade war between the world’s two largest economies.