China Imports From US Fall 19% In July Amid Trade War

Chinese imports of American goods plunged in July as a tariff war with Washington intensified. Imports of U.S. goods fell 19% from a year earlier to $10.9 billion, customs data showed Thursday, though that was an improvement over June’s 31.4% fall. Exports to the United States declined 6.5% to $38.8 billion.

Beijing has retaliated for U.S. tariffhikes in a dispute over trade and technology by imposing its own punitive duties and suspending purchases of American soybeans and other goods. The latest data follow President Donald Trump’s threat last week to extend punitive duties to an additional $300 billion of Chinese imports. China’s total exports rose 3.3% over a year earlier to $221.5 billion, rebounding from June’s 1.3% contraction amid weakening global consumer demand. Imports shrank 5.6% to $176.4 billion, an improvement over the previous month’s 7.3% decline.

“Shipments in and out of China held up better than expected last month, but a sustained turnaround still looks unlikely in the near-term,” said Julian Evans-Pritchard of Capital Economics in a report.

China’s central bank rattled global financial markets this week by allowing its yuan to weaken to an 11-year low against the U.S. dollar. That would make Chinese goods less expensive abroad but the currency’s 5% decline this year against the dollar is too small to completely offset U.S. tariffs of 25% percent. China’s global trade surplus widened by 60% over a year ago to $45.1 billion.