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China's trade with the USA is collapsing dramatically - worries for the economy!
Learn how China's foreign trade was affected in May 2025 while exports to the US fell sharply.
China's trade with the USA is collapsing dramatically - worries for the economy!
China's trade relations with the US experienced a dramatic decline in May 2025. Exports in US dollars fell by 34.5 percent compared to May 2024. Imports from the USA also developed significantly negatively, with a decline of 18.1 percent. This decline occurs in a context in which the two countries agreed in mid-May 2025 on a pause in the ongoing tariff dispute as well as a reduction in tariffs, as Stuttgart News report.
In contrast to the trade policy turbulence with the USA, China's foreign trade grew by 4.8 percent overall in May 2025 compared to the same month last year. However, this is overshadowed by an overall decline in imports of 3.4 percent. According to the data, the trade surplus amounted to about 103 billion US dollars (around 90 billion euros), with exports to Germany increasing by 21.5 percent while imports from Germany fell by 1.3 percent.
Effects of customs policy
The high tariff burden has a significant impact on the trade relations of both countries. Tariffs on Chinese goods in the USA were up to 145 percent, which dampened China's exports to the USA by 21 percent and imports by 13.8 percent in March 2025. These measures were introduced in retaliation for increases in tariffs on US imports to 125 percent that took effect during the same period, according to a report by daily news out.
Trade data predicted by experts could deteriorate further if current tariff policies remain in place. China's economy, heavily dependent on exports, is struggling with weak domestic demand compounded by the housing crisis. Of particular concern is general demand in the country, which is forcing Beijing to boost consumption through interest rate cuts and subsidy programs.
The reactions to developments in trade relations between China and the USA are unlikely to be limited to the direct economic effects. It remains to be seen how the current negotiations between the US Treasury Secretary and China's Vice Prime Minister over the tariff dispute will play out. These were scheduled for the weekend in Geneva, with China also seeking to position itself as a reliable partner in the global economy.