China's exports fell in April due to Trump's tariffs

China's exports fell in April due to Trump's tariffs

Hong Kong - China's export growth rate fell in April after Donald Trump's triple-digit tariffs took effect. This again shows the damaging impact that the US president's trade conflict is having on the world's two largest economies as they prepare for de-escalation talks.

Export figures and decline in trading activities

Last month, exports in US dollar terms rose 8.1%, according to Customs data, which were released on Friday. In comparison, growth was 12.4% in March, when many companies shipped their orders before the high tariffs took effect. China's exports to the USA fell over 2.5% in April, while imports from the US fell 4.7%.

Economic impact of the trade crisis

The current trade figures, although not as dramatic as economists expected, increase concerns about the serious economic consequences that the ongoing trade war already has for both the Chinese and US economies. Last week, official data showed that industrial activity in China fell at the fastest rate in 16 months in April, increasing pressure on Beijing to provide fresh economic stimulus. In the U.S., the economy contracted in the first quarter, the first contraction in three years, as companies stockpiled goods to prepare for "Liberation Day" tariffs that took effect in April.

Talks to de-escalate the trade conflict

The alarming numbers underscore the urgency of upcoming talks this week, when Trump's top trade officials meet with their Chinese counterparts in Geneva, Switzerland, to discuss possible ways to de-escalate the tariff war. The US has imposed tariffs of at least 145% on most Chinese imports, while China has responded with a 125% tariff on most US imports. As a result of these measures, trade between the two sides fallen drastically, as experts from the logistics sector report.

Price increases and upcoming shortages

The ships now arriving at U.S. ports from China are the first to be hit by the new tariffs America is imposing on most Chinese imports. This means that consumers can expect higher prices and shortages of certain products in just a few weeks.

Protests against tariffs and human rights issues

US Treasury Secretary Scott Bessent, who will be in Geneva with Trade Representative Jamieson Greer, has dampened hopes of a deal, suggesting only that he hopes for “de-escalation”. On Wednesday, Trump said he would not lower high tariffs on China before talks, which Beijing had previously cited as a condition for negotiations. The president also stressed that he wanted to raise the case of jailed Hong Kong media tycoon Jimmy Lai “as part of the negotiations.” Lai, a combative former publisher whose now-defunct tabloid Apple Daily was a constant wound to Beijing, is in the middle of a national security trial that could land him in prison for life.

This story is evolving and will be updated.