News

China’s April Export Surge Defies Tariff Pressures, Trade Balance Shrinks Amid Ongoing U.S. Tensions

China’s export sector delivered a strong performance in April 2025, outpacing expectations and showcasing surprising resilience amid a high-stakes trade war with the United States. However, the country’s overall trade surplus narrowed as monetary returns from exports declined.

🔹 Exports Rise 8.1% Despite Tariff Pressures

According to official data released on Friday, China’s exports rose by 8.1% year-on-year in April, significantly beating economists’ forecasts of 1.9% growth. While the figure marked a slowdown from March’s 12.4% increase, it still reflects strong global demand for Chinese goods, even under the weight of U.S. tariffs.

🔹 Trade Balance Narrows to $96.18 Billion

Despite the robust export growth, China’s trade surplus narrowed to $96.18 billion, down from $102.64 billion the previous month and below analyst expectations of $97 billion. This contraction highlights growing pressure on profit margins, likely due to exporters absorbing part of the U.S. tariff burden or offering discounts in other markets.

🔹 Imports Show Resilience Amid Domestic Tariffs

Imports into China also outperformed expectations, declining at a slower rate than anticipated. This suggests stable domestic demand, even as Beijing’s 125% retaliatory tariff on U.S. goods remains in place. These tariffs were imposed following President Trump’s 145% tariff hike on Chinese imports earlier in April.

🔹 Yuan Devaluation and Tariff Exemptions Cushion the Blow

China’s export performance may have been bolstered by a deliberate yuan devaluation, making Chinese goods more competitive internationally. Furthermore, the U.S. and China have both exempted several categories, such as electronics, from their respective tariff lists—providing relief to key industries.

🔹 High-Stakes Trade Talks Begin This Weekend

The data release comes just ahead of a fresh round of U.S.-China trade negotiations, scheduled to begin over the weekend. U.S. President Donald Trump has hinted at a potential rollback of tariffs, suggesting he might reduce duties on Chinese goods to 50% if talks progress positively.

Meanwhile, Chinese Vice Foreign Minister Chunying Hua reiterated on Friday that the current U.S. tariff regime was “unsustainable” and confirmed that Beijing is prepared for any outcome from the ongoing discussions.