A cargo ship loaded with overseas commerce containers heads in the direction of Qingdao Port in Qingdao Metropolis, Shandong Province, China, on November 5, 2025.
Costfoto | Nurphoto | Getty Pictures
China’s exports in October declined for the primary time in practically two years as companies’ front-loading momentum tapered off and commerce tensions with the U.S. escalated throughout the month earlier than the 2 international locations reached a deal.
Outbound shipments dropped 1.1% in October in U.S. greenback phrases from a 12 months earlier — their first contraction since March 2024 — disappointing economists’ expectations for 3% progress in a Reuters survey, and in contrast with a six-month excessive of 8.3% in September.
Imports rose 1% final month, lacking the estimates for 3.2% progress, as a protracted housing market downturn and weak job market circumstances continued to weigh on shopper demand. That they had jumped 7.4% in September.
Chinese language exporters and American patrons breathed a sigh of reduction final week after U.S. President Donald Trump and his Chinese language counterpart, Xi Jinping, struck a deal throughout their assembly in South Korea, de-escalating a scenario that had threatened to plunge bilateral relations right into a full-blown commerce warfare.
The 2 international locations agreed to roll again a variety of punitive measures, together with steep tariffs, export controls for vital minerals and superior expertise, whereas Beijing dedicated to purchasing extra U.S. soybeans and dealing with Washington to crack down on fentanyl flows.
Following the commerce truce, the efficient U.S. tariff fee on Chinese language exports dropped to 31%, in keeping with Macquarie Group’s estimates.
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