China's June exports fall after US tariff hike, imports shrink
13 July, 2019, 14:11
Beijing retaliated with its own penalties and ordered importers to find non-U.S. suppliers.
Imports of USA goods fell 31.4 percent from a year earlier to $9.4 billion, while exports to the American market declined 7.8 percent to $39.3 billion, customs data showed this morning.
China's imports from the United States plunged 31.4% in June from a year earlier amid a tariff war with Washington, while exports to the USA market sank 7.8%.
U.S. President Donald Trump delivers remarks before signing an executive order on "advancing kidney health" in Washington, U.S., July 10, 2019.
"The data confirm our view that the high tariffs have a negative impact on the domestic economy", said Tao Wang, chief China economist at UBA AG in Hong Kong.
China has rejected a USA demand to increase agricultural purchases beyond the number Trump and Xi agreed to in Argentina a year ago, according to Wang Huiyao, an adviser to China's cabinet.
US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin spoke on the phone with their Chinese counterparts this week, marking the first high-level contact following the G-20 meeting.
On Thursday (July 11), Trump accused China of "letting us down" by not promptly buying more USA farm products. Both sides will continue these talks as appropriate, the official said, without offering more details on the next steps.
China's global exports sank 1.3% to $212.8 billion while imports fell 7.3% to $161.9 billion.
For the first six months this year, China imported 38.27 million tonnes of soybeans, down 14.7 per cent from the same period last year. Trump said he will ease up the ban on Huawei and talks between Beijing and Washington will resume.
Trump did not specifically say he will re-escalate the trade war.
Chinese leaders express confidence their economy can survive the tariff fight. "While a deal makes sense for both sides this year, it's far from guaranteed and could hit many more snags". On Thursday Trump raised eyebrows with a tweet accusing China of not fulfilling a pledge to buy more agricultural goods, adding: "Hopefully they will start soon!"
Trump also claimed Xi had agreed that China would buy large amounts of USA agricultural goods.