China Had Record $540 Billion of Exports in Rush to Beat Tariffs
China’s exports reached a record so far this year as higher US tariffs, and the threat of more to come, drove frontloading of shipments.
The value of sales abroad rose 2.3% in the first two months of the year to $540 billion, according to a statement from the General Administration of Customs. Imports fell 8.4%, leaving a trade surplus of $170.5 billion.
The median forecasts of economists surveyed by Bloomberg were for exports to rise 5.9% and imports to gain 1%.
The figures offered a glimpse into how the world’s largest trading nation has fared since Donald Trump started raising tariffs on Chinese goods. The US imposed a 10% levy on almost all imports from China on Feb. 4, and then hiked that to 20% earlier this week.
China is highly vulnerable to the risk of a global trade war. Although the US directly absorbs only about 15% of Chinese exports, more goods are shipped there through Vietnam, Mexico and other countries.
Should the US continue to raise tariffs, it could drastically slash an important driver of growth that contributed to almost a third of China’s economic expansion last year. Even at their current levels, Trump’s higher charges may cut into the speed at which China’s exports grow for the rest of the year.
