financetom
Economy
financetom
/
Economy
/
China's March exports likely got front-loading lift before Trump's new tariffs took effect
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
China's March exports likely got front-loading lift before Trump's new tariffs took effect
Apr 10, 2025 11:46 PM

By Xiuhao Chen and Joe Cash

BEIJING (Reuters) - China's exports likely picked up pace in March, as factories rushed out shipments ahead of U.S. President Donald Trump's sweeping tariffs this month, though the broadening trade war with the United States has darkened the economic outlook.

Trade data for March is expected to show outbound shipments rose 4.4% year-on-year in value terms, according to the median forecast of 19 economists, accelerating from a 2.3 increase in the January-February period.

The slump in imports is expected to have persisted, down 2.0%, after an unexpected contraction of 8.4% at the start of the year.

The world's second-largest economy has gotten off to a bumpy start this year. Manufacturing activity expanded at the fastest pace in a year in March and retail sales perked up, but rising unemployment and persistent deflationary pressures continue to fuel calls for further stimulus.

More worryingly and of immediate concern for Chinese policymakers is the risks to economic growth from an intensifying trade war with the United States.

Trump has singled out China for additional 145% tariffs, despite having suspended the reciprocal duties he had imposed on dozens of economies he accuses of "ripping off" the U.S. by selling goods into the world's largest economy.

China has imposed 84% additional duties on American goods along with other retaliatory measures since Trump's fresh April 2 burst of tariffs.

Trade tensions with the U.S. could cut the shipment of goods between two economies by as much as 80%, according to a World Trade Organization estimate released on Wednesday.

Goldman Sachs this week lowered its forecasts for China's 2025 GDP growth to 4% from 4.5%, citing the effects of tariffs. Citi cut its forecast to 4.2% from 4.7% two days earlier.

China was not alone in stepping up efforts to out-run Trump's tariffs.

German exports also rose more than expected in February, signalling world-wide fontloading, with shipments to the U.S. up 8.5% on the month in anticipation of the U.S. duties, as did shipments from South Korea.

China's purchases of South Korean goods, a leading indicator of the China's imports, fell 4.1% in March, Korean data showed this month.

China's March trade surplus is forecast at $77.00 billion, down from $104.8 billion in December, the most recent comparable reading, but roughly in line with the level recorded a year ago. This will likely keep the production powerhouse in Trump's sights given that bringing the trade gap down is top of his agenda.

Trade data is scheduled to be released on Monday.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
US job openings increase in May; layoffs rise
US job openings increase in May; layoffs rise
Jul 2, 2024
WASHINGTON (Reuters) - U.S. job openings increased in May after posting outsized declines in the prior two months, but layoffs picked up amid slowing economic activity. Job openings, a measure of labor demand, rose 221,000 to 8.140 million on the last day of May, the Labor Department's Bureau of Labor Statistics said in its Job Openings and Labor Turnover Survey,...
US construction spending unexpectedly falls in May
US construction spending unexpectedly falls in May
Jul 1, 2024
WASHINGTON (Reuters) - U.S. construction spending unexpectedly fell in May as higher mortgage rates depressed single-family homebuilding, and recovery is likely to be muted by improving housing supply. The Commerce Department's Census Bureau said on Monday that construction spending dipped 0.1% after an upwardly revised 0.3% increase in April. Economists polled by Reuters had forecast construction spending rebounding 0.2% after...
Small Business Job Growth Moderates in June as Wages Hold Steady, Paychex Says
Small Business Job Growth Moderates in June as Wages Hold Steady, Paychex Says
Jul 2, 2024
10:58 AM EDT, 07/02/2024 (MT Newswires) -- Hiring by small businesses in the US decelerated in June on a monthly basis, while hourly earnings growth remained unchanged, data released Tuesday by Paychex ( PAYX ) showed. The jobs index came in at 100.29 in June, versus 100.58 in May and 101.37 last year, according to the Paychex Small Business Employment...
Powell says Fed needs more evidence of falling inflation before cutting rates
Powell says Fed needs more evidence of falling inflation before cutting rates
Jul 2, 2024
SINTRA, Portugal (Reuters) -The U.S. central bank still needs more data before cutting interest rates to ensure that recent weaker inflation readings give a true picture of what is happening to underlying price pressures, Federal Reserve Chair Jerome Powell said on Tuesday. Data for May showed the Fed's preferred measure of inflation did not increase at all that month, while...
Copyright 2023-2025 - www.financetom.com All Rights Reserved