China’s exports to the U.S. fell 33% in August, dropping to their lowest level in 6 months as the Trump administration’s trade policies take hold. U.S. imports to China were also down 16% compared with last year, CNBC reports.
Globally, China’s exports still grew by about 4.5%, but that marked their weakest pace since February.
Reactions and tariffs in place
Zichan Huang, an economist at Capital Economics, told CNBC that the temporary lift from the U.S.-China trade truce has faded. With Washington also raising tariffs on shipments rerouted through third countries, Huang says that “exports are likely to come under pressure in the near term.”
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The U.S. remains China’s largest single-country customer, importing $283 billion worth of goods through August 2025. Trump’s current tariffs on Chinese products average 57.6%, while Beijing has imposed about 32.6% tariffs on American goods, according to the Peterson Institute for International Economics.
Talks and threats
Washington and Beijing extended their tariff truce for another 90 days on Aug. 11, though top negotiator Li Chenggang’s visit to D.C. later that month produced no breakthrough. Meanwhile, the U.S. is levying a 40% tariff on Chinese goods routed through third countries – closing off a loophole often used to dodge higher duties.
President Trump has also threatened a 200% tariff if China cuts exports of rare-earth magnets, warning that the U.S. would halt shipments of plane parts to China if supplies were disrupted. China controls roughly 90% of the global market for the magnets, which are critical for cars, electronics and renewable energy.
Amid the standoff, China is leaning harder on other markets. Exports to the European Union rose 10.4% in August, to Southeast Asia by 22.5% and to Africa by more than 25%.
