China’s export growth slows in August as U.S. tariffs bite

China’s export growth slowed in August as higher U.S. tariffs and ongoing trade tensions weighed on shipments to major markets, the country’s customs agency said.

Exports reached $321.8 billion in August, up 4.4% from the same month a year earlier, down from a 7.2% increase in July. Imports totaled $219.5 billion, a 1.8% rise, leaving a large trade surplus that has become a flashpoint with trading partners.

For the first eight months of the year, China exported $785.3 billion more in goods and services than it imported, according to the monthly customs data. Trade officials and foreign partners have highlighted the gap as a source of tension, saying low-priced Chinese imports can benefit consumers but also contribute to job losses in manufacturing abroad.

The customs report showed a sharp decline in trade with the United States after Washington imposed additional tariffs. Chinese exports to the U.S. plunged 33% in August to $47.3 billion, while imports from the U.S. fell 16% to $13.4 billion. Exports to the European Union rose 10.4% to $46.8 billion, while imports from the 27-member bloc edged down to $22.8 billion.

China’s exports grew at their slowest pace since the January-February period, when shipments rose 2.3%. The government reports those two months together each year to smooth distortions from the Lunar New Year holiday.

The customs data also showed movement in strategic commodities. Exports of rare earths rose on a monthly basis to $55 million in August, up from $41 million in July, but were down 25.6% from the same month a year earlier. China remains dominant in processing rare earths, key components for products ranging from electric vehicles to defense technologies; a clampdown on exports in April briefly disrupted production at some foreign factories.

Trade tensions have been intensified by tariffs imposed by the United States since President Donald Trump took office early this year. Washington has applied about 30% in additional levies on certain imports from China, and Beijing responded with retaliatory import taxes. Both sides have conducted talks aimed at reaching a trade agreement, but the tariffs and the prospect of further escalation have already altered two-way trade flows.

Analysts say the slowdown in export growth reflects a combination of higher trade barriers, shifts in global demand and supply-chain adjustments. Policymakers in China and its trading partners face competing pressures to protect domestic industry while avoiding disruptions to global manufacturing and consumption.

The customs release did not offer forecasts. Market participants and governments will watch upcoming monthly data and the course of trade negotiations for signs of whether tariffs will be rolled back, tightened or replaced by a broader agreement that could reshape patterns of global trade.