According to data from the General Administration of Customs of China, exports increased by 2.3% in the January-February 2025 period compared to the same period last year, reaching USD 539.94 billion. However, this rate lagged behind the export growth momentum in the last quarter of 2024.
The last quarter of last year saw a remarkable rise in China's exports. Exports rose by 12.7% y-o-y in October 2024, 6.7% in November 2024 and 10.7% in December 2024. Experts state that the main reason for the increase in this period was that Chinese producers made pre-shipments to the US in anticipation of an increase in tariffs after Trump was elected president.
Trump's first tariff decisions after taking office directly affected China's exports to the US. After rising by 15.6% y-o-y in December 2024, China's exports to the US increased by only 2.3% in the first two months of 2025.
Sharp Decline in Imports
China's imports decreased by 8.4% to USD 369.43 billion in the first two months of the year. This decline was recorded as the sharpest import contraction since July 2023. The country's foreign trade surplus was calculated as USD 170.5 billion.
Trump's Tariff Hikes and Beijing's Response
US President Donald Trump imposed a 10% tariff on products imported from China with the decree he signed on February 1. On March 4, the tariff, which entered into force on February 4, was raised to 20% with a new regulation made on March 4.
Beijing retaliated against Trump's tariff hike by imposing additional taxes on certain products imported from the US and imposing sanctions on US companies.
Trump had stated during his election campaign that he could increase tariffs on Chinese imports by up to 60%. The steps to be taken in the US-China trade war in the coming period are closely monitored by global markets.
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