China’s exports saw a stronger-than-expected rise in June as a temporary suspension of U.S. tariffs sparked a surge in orders ahead of an August deadline, official data showed Monday.

Exports rose by 5.8% year-on-year last month, up from 4.8% in May. Imports also bounced back for the first time this year, growing by 1.1%, according to data released by China’s customs authority.

While shipments to the United States were down 16% in June, the decline was notably smaller than the 34.5% drop recorded in May.

Following the reimposition of steep tariffs by U.S. President Donald Trump — with rates as high as 245% on Chinese imports — both Washington and Beijing agreed to pause further duties to allow for trade negotiations. That prompted American retailers and other importers, who had largely suspended shipments of consumer goods like footwear, garments, and toys, to resume purchases from China.

However, trade talks have made limited progress so far, and continued uncertainty — with sudden policy shifts on both sides — has complicated long-term planning for many businesses.

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In the interim, the Trump administration has increased tariffs on Chinese goods by 30%, with a new August 12 deadline looming for the reinstatement of higher duties unless a breakthrough is reached.

The rebound in trade is expected to support China's GDP figures for the April-June quarter, which the government is scheduled to release on Tuesday.

Still, the long-term outlook remains cautious. Zichun Huang of Capital Economics warned that “tariffs are likely to remain elevated” and that Chinese exporters will face growing pressure. “Manufacturers are constrained in their ability to quickly gain global market share by slashing prices,” she said, predicting a slowdown in export growth in the coming months, which may weigh on the broader economy.

Despite ongoing tensions with Washington, China’s overall global trade expanded in the first half of 2025. Total trade — combining exports and imports — exceeded 20 trillion yuan ($2.8 trillion), a record high, as Chinese firms expanded their presence in new overseas markets.

China’s global trade surplus reached $586 billion in the first six months of the year.

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Exports to Southeast Asia rose 13% year-on-year during January to June, with strong growth in shipments to Thailand (22%), Vietnam (nearly 20%), and India (over 18%).

Trade with Europe also increased, rising 6.6% in the same period. However, exports of automobiles declined sharply after the European Union imposed higher tariffs on Chinese electric vehicles, falling nearly 38% year-on-year. Auto parts exports also dropped by over 23%.

Source: Agency