China’s Export Growth Slows Amid U.S. Trade Pressures

China’s export growth decelerated to 4.4% year-on-year in August, marking the weakest performance in six months and falling short of economist expectations. Imports edged up just 1.3%, underscoring fading momentum from the temporary U.S. tariff truce. The slowdown reflects both tariff impacts and a high base effect from last year’s export surge, raising concerns about sustainability without stronger domestic demand.

Trade tensions with the U.S. intensified as exports to China’s largest single-country market plummeted 33% in August. With President TRUMP threatening tariffs as high as 200% on select goods, economists warn duties above 35% could cripple Chinese exporters. Beijing now faces a stark choice: absorb heavy losses in the U.S. market or accelerate its pivot to alternative trade partners.

China is aggressively diversifying its export destinations, with shipments to Southeast Asia jumping over 22% in August. This strategic shift comes as African and other emerging markets show increasing potential to offset declining U.S. demand.