China’s exports grew in June as companies rushed shipments before a possible return of U.S. tariffs in August.
Customs data showed that China’s exports rose by 5.8% compared to last year. This was higher than the 5.0% increase expected by economists.
Imports also improved, rising 1.1% in June. This marked a recovery after a 3.4% drop in May.
The growth in exports is linked to a temporary trade truce between China and the United States. The agreement is set to expire on August 12.
Experts say businesses are frontloading shipments to avoid future duties. These duties could be as high as 100% if no new deal is made.
Analyst Chim Lee said freight rates for U.S.-bound goods have started to fall. This may signal that frontloading is slowing down.
China’s rare earth exports rose 32% in June. This may be a result of recent trade agreements that eased supply chain controls.
However, risks to China’s trade remain. U.S. President Trump has imposed new tariffs on goods passing through Vietnam. He also warned of 10% tariffs on imports from BRICS countries, including China.
China is also facing criticism from the European Union. EU leaders accuse China of producing too much and supporting Russia’s war economy.
China’s trade surplus for June reached $114.7 billion. This was up from $103.22 billion in May.
With the August deadline approaching, pressure is building on China and the U.S. to reach a lasting trade agreement.
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