Economy

China’s June Exports, Imports Fall as Trade War Takes Heavier Toll

China’s June Exports, Imports Fall as Trade War Takes Heavier Toll

China retaliated with penalty duties and ordered importers to find non-U.S. suppliers.

Imports of USA goods fell 31.4 percent from a year earlier to $9.4 billion, while exports to the American market declined 7.8 percent to $39.3 billion, customs data showed this morning.

May was the month of trade wars as hopes for a China-U.S. trade deal fell apart.

President Trump on Thursday accused China of breaking a promise President Xi Jinping made at the G20 to buy more USA farm products - ratcheting up the pressure as talks resumed over the trade war between the world's two largest economies.

"We don't expect global growth to bottom out until next year".

"Mexico is doing great at the Border, but China is letting us down in that they have not been buying the agricultural products from our great Farmers that they said they would".

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Trade envoys talked by phone Tuesday in their first contact since Trump and Xi met in Japan, the Chinese Commerce Ministry said. Both sides will continue these talks as appropriate, the official said, without offering more details on the next steps.

A date for face-to-face talks was not agreed during the call, although trade tensions between China and the U.S. remain high, given there has been little progress to resolve the conflict since the ceasefire was agreed. On Thursday Trump raised eyebrows with a tweet accusing China of not fulfilling a pledge to buy more agricultural goods, adding: "Hopefully they will start soon!"

Chinese leaders express confidence their economy can survive the tariff fight.

China's June exports are expected to have declined 2 percent from a year earlier, according to the median estimate of 34 economists in a Reuters poll, compared with a 1.1% gain in May.

The United States and China agreed last month to restart trade talks that stalled in May. Trump said he will ease up the ban on Huawei and talks between Beijing and Washington will resume. 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.

U.S. -China trade frictions brought some pressure on China's trade, but the impact is manageable, Li said.