US tariffs hit China’s exports in May, but June seen as ‘a better month’

China’s export growth slowed last month, weighed down by fewer US orders being made before the two countries came to a 90-day tariff truce.

And while June’s prospects look poised to improve, China’s manufacturing and trade sectors remain under strain, according to economists, who also point to lingering uncertainties over American tariffs.

China’s May exports were up by 4.8 per cent, year on year, to US$316.1 billion, customs data showed on Monday.

The figure followed April’s 8.1 per cent growth and fell short of the estimate of a 6.28 per cent increase in a market survey by Chinese financial data provider Wind.

Exports to the United States plunged by 34.52 per cent, sharper than the 21 per cent drop seen in April, owing to the trade war between the two countries.

On May 12, China and the United States agreed to a temporary truce in their tit-for-tat tariff escalations, jointly announcing the removal of most tariffs imposed since April 2.