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The pace of Chinese export growth slowed significantly in August, according to Beijing’s customs agency. U.S. President Donald Trump’s tariffs are responsible for this decline. In August, Chinese goods exports reached $321.8 billion, marking a 4.4 percent increase from the same month last year. This was down from a 7.2 percent jump in July, with the primary cause being a sharp drop in exports to the U.S.
Trump initiated a trade war with China shortly after taking office, accusing it of practices that harmed American businesses. This economic conflict had a notable impact on markets and posed a risk of plunging the U.S. into a recession. After imposing high tariffs and other countermeasures, both sides entered negotiations as tensions eased, calming financial markets.
However, negotiations are ongoing, and no comprehensive trade deal has been finalized yet. The latest Chinese data underscores the effectiveness of Trump’s tariffs in curbing exports to the U.S., though they also raise import prices for consumers and businesses at home.
U.S.-China Trade Plunges
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As of now, Trump has capped additional tariffs on imports from China at 30 percent, with ongoing trade negotiations. China’s tariff on U.S. goods is set at 10 percent. Exceptions include higher Section 232 tariffs on key products and industries.
The tariffs from both sides have affected two-way trade. Chinese exports to the U.S. declined by 33 percent in August to $47.3 billion, while its imports from the U.S. fell by 16 percent to $13.4 billion. Overall, China’s exports grew at their slowest pace since January-February 2023, when they rose just 2.3 percent.
Mohamed A. El-Erian, chief economic adviser at Allianz, noted on X that these numbers, which are not favorable for the Chinese economy already facing challenges, highlight the urgent need for more concerted government efforts to reform growth strategies.
In August, the Trump administration ended the “de minimis” exemption from tariffs on small packages worth less than $800, likely affecting Chinese exporters to the U.S. who sell through e-commerce platforms like Temu and Shein.
China’s Rare Earths Exports
China’s rare earth exports increased marginally in August to $55 million, up from $41 million in July but down 25.6 percent compared to the same month last year. These elements are crucial for many products, including washing machines, cars, and fighter jets.
China dominates the global market for processing rare earths and temporarily halted production at some factories in Europe and the U.S. in April due to a clampdown on exports, which raised concerns about potential shutdowns elsewhere. In June, China agreed to increase export permits for rare earths after discussions with the U.S. regarding lifting restrictions on chip design software and jet engine sales.
This article is based on reporting by the Associated Press and was updated on 9/8/25 at 6:58 a.m. ET.
