According to data released by the General Administration of Customs of China, exports to the US plunged by 34.5% in May 2025, marking the largest decline since the pandemic began. This has raised significant concerns, as even after reaching a 90-day temporary tariff relief agreement, trade tensions remain unresolved.

In addition to the sharp decline in exports to the US, imports from the US also dropped by 18.1%, leading to a 41.55% reduction in China's trade surplus with the US, which fell to $18 billion. However, overall trade figures remain strong, with China's total trade surplus increasing by 25% to $103.2 billion.

Due to the impact of high US tariffs, Chinese exporters have begun to shift their focus towards markets in Southeast Asia and Europe. Exports to ASEAN countries in May saw an almost 15% year-on-year increase, while exports to the EU and Africa grew by 12% and over 33%, respectively. Nevertheless, these gains are insufficient to offset the significant decline in exports to the US.

Economists suggest that while a drop in orders before negotiations is evident, a rebound is expected in June. However, there are warnings that current tariff measures could pose further risks and challenges for China's export outlook. The competition within the Chinese market is becoming increasingly fierce, especially in the automotive sector, where a new wave of price cuts reflects the ongoing economic uncertainty.