Chinese exports plunge as U.S. retailers cancel orders over tariffs

Chinese exports to the U.S. plunged in April, as steep tariffs on China make it too costly for many U.S.-based retailers to import goods from the country.

President Trump ratcheted up his trade war with Beijing in April, hiking tariffs on Chinese goods to up to 145%. China retaliated with 125% levies on Americans goods.

As a result, shipments of goods from China to the U.S. in April dropped 21% compared with the same period one year earlier, data released Friday from China's General Administration of Customs shows. Chinese exports to Southeast Asian countries surged by the same amount, according to the April data, demonstrating how Mr. Trump's tariffs are already upending trade patterns.

On Friday, Mr. Trump said in a post on his social media site Truth Social that the levies on China could come down to 80%. The lower rate "seems right," wrote the president, ahead of U.S.-China trade negotiations set to kick off this weekend in Switzerland.

While lower than the 145% tariffs currently in place, 80% levies would still make importing goods from China prohibitively expensive for many U.S.-based businesses. Many consumers, meanwhile, are unlikely to afford price hikes from steep tariffs at a time when they are already squeezed financially.

Some business owners say they are skipping orders they would normally have already placed with Chinese factories, as they wait and see where tariff rates on China and other countries settle.

Mr. Trump in April announced a bevy of country-specific tariffs, which he later placed on hold — with the exception of those on China — for 90 days. A 10% tariff in place on all imports to the U.S. remains in effect. Businesses say the 10% baseline tax is a challenge, but far easier to absorb than duties over 100%.

April's shakeup in the flow of goods around the world has pushed many retailers to rethink their supply chains, with some taking steps to reduce their reliance on China, amid the steep levies in place.

Meanwhile, Chinese imports from the U.S. dropped more than 13% compared with April 2024. Beijing could bring down its 125% retaliatory tariff on U.S. goods, if trade negotiations between the two countries progress this weekend.

UBS analysts expect U.S. tariffs on Chinese goods to settle at around 34%, "as a more constructive tone and the start of high-level talks in Switzerland suggest both sides are open to deescalation and further negotiation," said Ulrike Hoffmann-Burchardi, chief investment officer of global equities at UBS Global Wealth Management, in a research note.

Capital Economics' China economist Zichun Huang added that U.S. tariffs inflict minimal harm to China, as exports to other countries in Asia offset the decline in shipments to the U.S.