Tariffs bite into China's June exports and importsBusiness | 12 Jul 2019 6:26 pm
China’s exports fell in June as the United States ramped up trade pressure, while imports shrank more than expected, pointing to further strains on the world’s second-largest economy.
“The latest U.S. tariff increase probably contributed to this drop, alongside a broader slowdown in foreign demand,” Capital Economics said in a note.
“We don’t expect global growth to bottom out until next year. And while the truce reached between (presidents) Trump and Xi at the G20 late last month removes the immediate threat of further U.S. tariffs, our base case remains that trade talks will break down again before long.”
Exports fell by 1.3 percent from a year earlier, not as bad as the 2 percent drop analysts had expected but reversing a surprise gain in May, customs data showed today, Reuters reports.
Imports fell by 7.3 percent, a sharper drop than the 4.5 percent forecast by analysts and following a 8.5 percent contraction in May, suggesting domestic demand remains tepid despite a flurry of growth boosting measures since last year.
That left China with a trade surplus of US$50.98 billion last month, compared with a US$41.66 billion surplus in May.