China’s export growth slowed to a three-month low in May as shipments to the United States dropped following tariffs imposed by President Donald Trump, according to customs data released on Monday.
While exports rose 4.8% year-on-year, it was down from 8.1% in April, with shipments to the US falling almost 12% month-on-month.
The report of the slowdown comes just hours before another round of trade talks between US and Chinese officials in London.
In May, China exported $28.8 billion (€25.23 billion) worth of goods to the US, down from $33 billion in April.
Analysts say the strong trade figures in March and April can be attributed to a rush by exporters to ship goods ahead of anticipated tariff hikes.
At the same time, imports from the US also fell 7.4% to $10.8 billion.
Trump, Xi phone call signals thaw in ties
On Thursday, Trump said he had a “very good phone call” with China’s President Xi Jinping, which “resulted in a very positive conclusion for both Countries.”
The call comes amid a 90-day tariff truce that came into effect last month which paused a spiraling trade war between the world’s two largest economies.
Trump has lowered his 145% tariffs on Chinese goods to 30% for 90 days to allow for talks while China also reduced its taxes on US goods from 125% to 10%.
Beijing braces for economic fallout
The China-US trade talks are happening as US policymakers have voiced frustration at China’s stalling on export license approvals for rare earths and other elements needed in the high-tech, defense, and clean energy sectors.
China’s government data also showed a fall in the producer price index, while consumer prices dipped.
Meanwhile, to cushion the economic blow, Beijing introduced new stimulus measures in May, including interest rate cuts.
Edited by: Kieran Burke
