China's May exports slow, deflation deepens as tariffs bite | The Business Standard
Skip to main content
  • Latest
  • Epaper
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Monday
June 16, 2025

Sign In
Subscribe
  • Latest
  • Epaper
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
MONDAY, JUNE 16, 2025
China's May exports slow, deflation deepens as tariffs bite

China

Reuters
09 June, 2025, 03:20 pm
Last modified: 09 June, 2025, 03:23 pm

Related News

  • Bangladesh to open new missions in five countries to boost trade, diplomacy
  • Gunman who shot two Minnesota lawmakers still at large as manhunt continues
  • Chinese acting ambassador meets BNP secretary general
  • Trade through Benapole resumes after 10-day Eid holiday
  • China's UN envoy condemns Israeli strikes on Iran: state media

China's May exports slow, deflation deepens as tariffs bite

Exports had surged 12.4% year-on-year and 8.1% in March and April, respectively, as factories rushed shipments to the US and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world.

Reuters
09 June, 2025, 03:20 pm
Last modified: 09 June, 2025, 03:23 pm
Cranes and containers are seen at the Yantian port in Shenzhen, following the novel coronavirus disease (COVID-19) outbreak, Guangdong province, China May 17, 2020. Photo: REUTERS/Martin Pollard/File Photo
Cranes and containers are seen at the Yantian port in Shenzhen, following the novel coronavirus disease (COVID-19) outbreak, Guangdong province, China May 17, 2020. Photo: REUTERS/Martin Pollard/File Photo

Highlights:

  • China's May export growth slows as tariffs take toll
  • Exports to US drop the most since early 2020
  • Factory-gate deflation worst in almost two years
  • China, US set for further trade talks on Monday

China's export growth slowed to a three-month low in May as US tariffs slammed shipments, while factory-gate deflation deepened to its worst level in two years, heaping pressure on the world's second-largest economy on both the domestic and external fronts.

US President Donald Trump's global trade war and the swings in Sino-US trade ties have in the past two months sent Chinese exporters, along with their business partners across the Pacific, on a roller coaster ride and hobbled world growth.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

Underscoring the US tariff impact on shipments, customs data showed that China's exports to the US plunged 34.5% year-on-year in May in value terms, the sharpest drop since February 2020, when the outbreak of the Covid-19 pandemic upended global trade.

Total exports from the Asian economic giant expanded 4.8% year-on-year in value terms last month, slowing from the 8.1% jump in April and missing the 5.0% growth expected in a Reuters poll, customs data showed on Monday, despite a lowering of US tariffs on Chinese goods which had taken effect in early April.

"It's likely that the May data continued to be weighed down by the peak tariff period," said Lynn Song, chief economist for Greater China at ING.

Song said there was still front-loading of shipments due to the tariff risks, while the acceleration of sales to regions other than the United States helped to underpin China's exports.

Imports dropped 3.4% year-on-year, deepening from the 0.2% decline in April and worse than the 0.9% downturn expected in the Reuters poll.

Exports had surged 12.4% year-on-year and 8.1% in March and April, respectively, as factories rushed shipments to the US and other overseas manufacturers to avoid Trump's hefty levies on China and the rest of the world.

While exporters in China found some respite in May as Beijing and Washington agreed to suspend most of their levies for 90 days, tensions between the world's two largest economies remain high, and negotiations are underway over issues ranging from China's rare earths controls to Taiwan.

Trade representatives from China and the US are meeting in London on Monday to resume talks after a phone call between their top leaders on Thursday.

China's imports from the US also lost further ground, dropping 18.1% from a 13.8% slide in April.

Zichun Huang, economist at Capital Economics, expects the slowdown in export growth to "partially reverse this month, as it reflects the drop in US orders before the trade truce," but cautions that shipments will be knocked again by year-end due to elevated tariff levels.

China's exports of rare earths jumped sharply in May despite export restrictions on certain types of rare earth products, causing plant closures across the global auto supply chain.

The latest figures do not distinguish between the 17 rare earth elements and related products, some of which are not subject to restrictions.

A clearer picture of the impact of the curbs on exports will only be available when more detailed data is released on June 20.

China's May trade surplus came in at $103.22 billion, up from the $96.18 billion the previous month.

Other data, also released on Monday, showed China's imports of crude oil, coal, and iron ore dropped last month, underlining the fragility of domestic demand at a time of rising external headwinds.

Beijing in May rolled out a series of monetary stimulus measures, including cuts to benchmark lending rates and a 500 billion yuan low-cost loan programme, aimed at cushioning the trade war's blow to the economy.

China's markets showed muted reaction to the data. The blue-chip CSI300 Index (.CSI300) climbed 0.29% and the benchmark Shanghai Composite Index (.SSEC) was up 0.43%.

DEFLATIONARY PRESSURES

Producer and consumer price data, released by the National Bureau of Statistics on the same day, showed that deflationary pressures worsened last month.

The producer price index fell 3.3% in May from a year earlier, after a 2.7% decline in April and marked the deepest contraction in 22 months.

Cooling factory activity also highlights the impact of US tariffs on the world's largest manufacturing hub, dampening faster services growth as suspense lingers over the outcome of US-China trade talks.

Retail sales growth slowed last month as spending continued to lag due to job insecurity and stagnant new home prices.

These headwinds were evident in China's car sales for May, which grew 13.9% year-on-year, slowing from a 14.8% increase the previous month, data from the China Passenger Car Association showed.

Sluggish domestic demand and weak prices have weighed on China's economy, which has struggled to mount a robust post-pandemic recovery amid a prolonged property slump and has relied on exports to underpin growth.

Businesses have also had to adapt to the falling prices. US coffee chain Starbucks (SBUX.O) said on Monday it would lower prices of some iced drinks by an average of 5 yuan in China.

While the core inflation measure, excluding volatile food and fuel prices, registered a slightly faster 0.6% year-on-year rise, from a 0.5% increase in April, Capital Economics' Huang said the improvement looks "fragile".

She still expects "persistent overcapacity will keep China in deflation both this year and next."

Top News / World+Biz

China / export / United States (US) / Trade / US Tariff War / Trade War

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • A drone photo shows the damage over residential homes and a school at the impact site following a missile attack from Iran on Israel, in Bnei Brak, Israel June 16, 2025. REUTERS/Chen Kalifa
    Destruction mounts as Iran's missile strikes devastate central Israel
  • ACC Chairman Mohammad Abdul Momen at a press briefing on 16 June 2025. Photo: TBS
    If Tulip is innocent, why did she resign from UK ministerial post? ACC chairman asks
  • Former Bangladesh High Commissioner to the UK Saida Muna Tasneem. Photo: Collected
    ACC launches inquiry against ex-UK envoy Saida Muna, husband over laundering Tk2,000cr

MOST VIEWED

  • Bangladesh Bank Governor Ahsan H Mansur. TBS Sketch
    Merger of 5 Islamic banks at final stage: BB governor
  • UCB launches Bangladesh's first microservices-based open API banking platform
    UCB launches Bangladesh's first microservices-based open API banking platform
  • Photo: Collected
    Pakistan rejects reports of missile supply to Iran
  • Infographic: TBS
    Non-performing loans surge by Tk74,570cr in Q1 as hidden rot exposed
  • Crore-taka bank accounts edge down by 719 in March quarter
    Crore-taka bank accounts edge down by 719 in March quarter
  • Nepal begins 38MW hydropower export to Bangladesh
    Nepal begins 38MW hydropower export to Bangladesh

Related News

  • Bangladesh to open new missions in five countries to boost trade, diplomacy
  • Gunman who shot two Minnesota lawmakers still at large as manhunt continues
  • Chinese acting ambassador meets BNP secretary general
  • Trade through Benapole resumes after 10-day Eid holiday
  • China's UN envoy condemns Israeli strikes on Iran: state media

Features

The GLS600 overall has a curvaceous nature, with seamless blends across every panel. PHOTO: Arfin Kazi

Mercedes Maybach GLS600: Definitive Luxury

7h | Wheels
Renowned authors Imdadul Haque Milon, Mohit Kamal, and poet–children’s writer Rashed Rouf seen at Current Book Centre, alongside the store's proprietor, Shahin. Photo: Collected

From ‘Screen and Culture’ to ‘Current Book House’: Chattogram’s oldest surviving bookstore

23h | Panorama
Photos: Collected

Kurtis that make a great office wear

3d | Mode
Among pet birds in the country, lovebirds are the most common, and they are also the most numerous in the haat. Photo: Junayet Rashel

Where feathers meet fortune: How a small pigeon stall became Dhaka’s premiere bird market

4d | Panorama

More Videos from TBS

Advisor involved in corruption by appointing city corporation administrator: Ishraq

Advisor involved in corruption by appointing city corporation administrator: Ishraq

1h | TBS Today
MI6 appoints first female chief in 116-year history

MI6 appoints first female chief in 116-year history

1h | TBS World
ICT orders newspapers ads summoning Hasina to appear before tribunal on 24 June

ICT orders newspapers ads summoning Hasina to appear before tribunal on 24 June

3h | TBS Today
Who was IRGC intelligence chief Kazemi killed in Israeli strike?

Who was IRGC intelligence chief Kazemi killed in Israeli strike?

4h | TBS World
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net