Chinese exports to US plummeted in April as Trump’s tariffs kicked in

By Faith Barbara N Ruhinda Updated at 1667 EAT on Friday 9 May 2025

China’s exports to the United States fell sharply in April after Donald Trump’s triple digit tariffs took effect, in another sign of the damage the US president’s trade war is causing the world’s two largest economies as they prepare for de-escalation talks.

However, China’s overall exports grew by 8.1% in US dollar terms last month, a figure that greatly exceeded the forecast from a group of economists polled by Reuters.

The stronger-than-expected performance was due to a surge in Chinese exports to countries in Southeast Asia and Europe, which were 21% and 8% higher respectively.

The trade figures point to the significant toll the ongoing tarrif war is already taking on the Chinese economy, as well as Beijing’s efforts to find markets beyond the US for its exports.

Last week, official data showed China’s factory activity contracted at its fastest pace in 16 months in April, adding urgency to Beijing’s efforts to roll out fresh economic stimulus.

But the impact isn’t confined to China. In the US, the economy went into reverse in the first quarter, its first contraction in three years, as businesses stockpiled goods in anticipation of Trump’s “Liberation Day” tariffs, which began in April.

The stark numbers illustrate what’s at stake this weekend when Trump’s top trade officials meet with their Chinese counterparts in Geneva, Switzerland to discuss a possible de-escalation of the trade war.

The US has placed at least a 145% tariff on most Chinese imports, and China has responded with a 125% tariff on most US imports. As a result, trade between the two sides is falling sharply, according to logistics experts.

Ships now pulling into US harbors from China are the first to be subject to the tariffs that America is imposing on most Chinese imports. That means, in a matter of weeks, consumers will face higher prices and shortages of certain items.

US Treasury Secretary Scott Bessent, who will be in Geneva along with Trade Representative Jamieson Greer, has poured cold water on prospects of a deal, saying only that he’s hoping for a “de-escalation.”

Trump appeared more sanguine. When asked Thursday whether he would lower tariffs on China if talks this weekend went well, Trump said: “Well, it could be.”

“I mean, we’re going to see,” he added. “Right now, you can’t get any higher. It’s at 145, so we know it’s coming down. I think we’re going to have a very good relationship.”

Facing a number of deep-seated economic challenges at home, including a crisis in the property sector and a reluctance among consumers to spend, China has been relying heavily on its export industry to boost overall growth.

Although Beijing has been working to reduce its trade reliance on the US since the first trade war with Trump kicked off in 2018, America remains a monumentally important market.

Economists at investment bank Nomura wrote in a research note last week that the US directly accounted for 14.7% of China’s total exports of goods last year.

The figure rises to 20.6% if shipments via Hong Kong, Southeast Asia and Mexico are factored in.

Around 2.2% of China’s gross domestic product is directly affected tariffs, they estimated, so China may lose 1.1% of its GDP, if its exports to the US are halved. “The actual loss will be larger as the shock ripples through to other sectors, especially the services sectors that facilitate merchandise exports,” they wrote.

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