<a title="India China" href="https://www.benefitnews24.com/india/india-china-ties-warm-with-trade-boost/18069" target="_blank" rel="noopener">China&rsquo;s</a> export engine continued to lose steam in August, underscoring how the United States&rsquo; tariff regime and subdued global demand are reshaping trade flows from the world&rsquo;s second-largest economy.
According to customs data released in Beijing, exports grew 4.4% year-on-year in August, reaching USD 321.8 billion, marking a slowdown from July&rsquo;s 7.2% expansion. Imports edged up 1.3% to USD 219.5 billion, well below expectations, reflecting weak domestic consumption amid a property downturn and fragile labour market confidence. The overall trade surplus hit USD 102.3 billion, higher than both forecasts and the USD 91.2 billion recorded in August 2024.
The most striking figure was China&rsquo;s sharp contraction in trade with the <a title="US" href="https://www.benefitnews24.com/international/us-cuts-china-tariffs-to-30-in-90-day-trade-truce/11425" target="_blank" rel="noopener">United States</a>. Exports to its third-largest trading partner slumped 33% to USD 47.3 billion, while imports from the US shrank 16% to USD 13.4 billion, leaving the bilateral surplus at USD 20.3 billion&mdash;down from USD 23.7 billion in July. By contrast, China&rsquo;s trade with ASEAN nations and the European Union remained resilient, rising 9.7% and 4.3% year-on-year respectively in the first eight months of 2025.
<h3 data-start="1515" data-end="1554">Tariff shock or global headwinds?</h3>
The data highlight a central dilemma: are Washington&rsquo;s tariffs meaningfully altering China&rsquo;s trade structure, or is Beijing simply rerouting goods through alternative markets? Since early 2025, President Donald Trump has imposed tariffs of up to 30% on Chinese imports, citing industrial overcapacity and unfair subsidies. Beijing responded with its own duties, creating volatility in two-way trade.
In value terms, China&rsquo;s exports to the world still rose 5.9% in the first eight months of 2025, compared to a 2.2% fall in imports. This contrasts with 2024, when US data showed the American goods and services deficit narrowed to USD 70.4 billion in August, down from USD 78.9 billion in July, partly due to weaker imports from China.
Economists argue that while tariffs have undeniably dented US-bound shipments, China&rsquo;s overall trade resilience reflects diversification. ASEAN now accounts for 16.7% of China&rsquo;s foreign trade, cementing its role as Beijing&rsquo;s top partner, followed by the EU. Meanwhile, Belt and Road nations collectively absorbed 15.3 trillion yuan worth of Chinese goods in the first eight months, a 5.4% rise year-on-year.
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ALSO READ: https://www.benefitnews24.com/business/xi-warns-trump-backs-global-trade-multilateralism/9388
<h3 data-start="2723" data-end="2753">Domestic vulnerabilities</h3>
Yet the trade balance masks deeper domestic strains. Imports of consumer goods have slowed, signalling weaker household demand. The property sector downturn continues to erode confidence, while youth unemployment remains high. Analysts suggest that without a revival in consumption, export-driven growth alone cannot sustain China&rsquo;s economy.
State media struck a more optimistic tone, stressing the 3.5% growth in overall foreign trade during January&ndash;August as evidence of resilience. Officials highlighted robust exports of electronics, integrated circuits, and automobiles as long-term strengths. But the fading boost from Beijing&rsquo;s earlier tariff truce with Washington indicates that China&rsquo;s reliance on external demand leaves it exposed to shifts in US trade policy.
<h3 data-start="3535" data-end="3548">Outlook</h3>
The August slowdown underscores a reality: tariffs have not derailed China&rsquo;s global export machine, but they have weakened its US channel. For Washington, reduced imports may ease political pressure at home, but for Beijing, the challenge is to balance external resilience with fragile domestic consumption. As trade negotiations remain fragile, the contest over tariffs is less about statistics and more about who sets the rules of global commerce.

Cargo containers stacked at China sea port

China’s trade surplus widens but slower export growth highlights tariff strain

US tariffs weigh on China’s export rebound

China’s trade surplus widens but slower export growth highlights tariff strain

September 8, 2025 | 16:58 IST