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China’s exports to US fall 17.6% March to April amid trade war

  • By Al Mayadeen English
  • Source: Agencies
  • 9 May 2025 13:08
4 Min Read

China's exports to the US dropped by 17.6% month-to-month in April, signaling trade tensions and economic strain in Beijing-Washington relations ahead of their upcoming Switzerland talks.

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  • A container ship sails off a port in Qingdao in east China's Shandong province on Wednesday May 7, 2025 (Chinatopix via AP)
    A container ship sails off a port in Qingdao in eastern China's Shandong province on May 7, 2025. (Chinatopix via AP)

As reported by Barrons, China's exports to the United States fell sharply in April, dropping 17.6% month-on-month to $33.0 billion, down from $40.1 billion in March, according to data released Friday by the General Administration of Customs. The decline comes amid intensifying trade tensions between Beijing and Washington.

Despite the steep fall in shipments to the US, China's overall exports rose between 7% to 8.1% year-on-year in April, surpassing analyst expectations, according to various sources, including the Financial Times.

This growth was driven by increased trade with Southeast Asia and Europe, as Chinese exporters redirected shipments away from the US market. Exports to countries like Indonesia, Thailand, and Vietnam saw significant increases, highlighting China's strategy of diversifying its export markets, according to the Financial Times.

Tariffs weigh heavily on bilateral trade, global supply chains, and foreign investment 

Amid the escalating trade war, the US is considering reducing tariffs on Chinese imports from 145% to between 50% and 54% as early as next week, as reported by the New York Post. This potential move coincides with upcoming US-China trade negotiations in Switzerland, reflecting growing industry optimism for a resolution to the trade conflict. 

Barrons reported that analysts remain cautious, noting that while the talks may pave the way for future dialogue between Presidents Trump and Xi Jinping, significant breakthroughs are unlikely in the short term.

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Nonetheless, both sides have expressed a willingness to engage in negotiations aimed at reducing tariffs and easing supply chain constraints. 

US Supply Chain disruptions

As reported by Reuters, according to the New York Federal Reserve, its Global Supply Chain Pressure Index (GSCPI) fell to -0.29 in April, down from -0.17 in March, indicating below-normal levels of stress in global supply chains. This suggests that, despite ongoing challenges, supply chains are operating more smoothly than in previous years.

However, the easing of supply chain pressures is not uniform across all sectors and regions. 

The automotive sector has been notably impacted. In January 2025, the Trump administration announced a 25% tariff on all imported cars, including those from USMCA partners Canada and Mexico, disrupting the highly integrated North American auto supply chain. This led to temporary factory closures and layoffs, with companies like Stellantis pausing operations in Canada and Mexico and laying off US workers.

China for China strategy

In related news, most European firms in China have so far limited the direct impact of the US-China trade war, though 59% report a tougher business climate in 2025, according to a new EU Chamber survey cited by Bloomberg.

Many companies are adapting through a “China for China” strategy, but over 60% expect rising competition and falling profits. The Chamber urged Beijing to reform industrial policy and improve conditions as political pressure from both Washington and Beijing intensifies.

The “China for China” strategy refers to a business model where foreign companies localize their operations within China to serve the Chinese market directly, rather than relying on exports or cross-border supply chains. This approach helps companies mitigate risks from the trade war and political pressures, especially tariffs, while signaling a commitment to China as a long-term market.

The survey, conducted between April 17 and 27, collected responses from over 150 firms.

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