China's August Imports and Exports Rise for Third Month, Fueled by Non-US Markets

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China’s imports and exports have increased for the third straight month in August, reflecting a continued shift toward trading with economies outside of the United States amid ongoing tariff uncertainties.

The country’s foreign trade value grew by 3.1% to $541.3 billion last month compared to the same period last year, according to data from the General Administration of Customs. Exports experienced a 4.4% rise to $321.8 billion, while imports saw a modest increase of 1.3%, reaching $219.5 billion.

In July, trade volume was up 5.9% year-over-year, with imports increasing by 4.1% and exports by 7.2%. June’s figures also showed gains, with overall growth of 3.9%, imports up 1.1%, and exports rising 5.8%.

The slower export growth last month primarily resulted from a higher baseline a year earlier and was further impacted by declining trade with the U.S., explained Wang Qing, chief macro analyst at Golden Credit Rating International.

Exports to the U.S. plummeted 33% in August to $31.6 billion, a significant increase in the decline from July’s 22% decrease. Wang estimated that exports to the U.S. accounted for about a 5.1 percentage point drag on overall export growth last month. Despite a 90-day extension to pause tariff hikes following ongoing economic and trade talks, current U.S. tariffs on Chinese goods remain as high as 41.3%, intensifying downward pressure on exports to the U.S.

Meanwhile, China’s exports to other major trading partners accelerated, showcasing a strategic move amid rising tariffs. Exports to Southeast Asia, China’s largest trading partner, jumped 23% from the previous year, faster than the 17% increase in July. Exports to the European Union grew 10% (up from 9%), and exports to Japan increased by 6.7% (up from 2.4%).

Looking ahead, Wang predicts that China will continue to see a decline in exports to the U.S. this month, which will further dampen overall export growth. He particularly noted that the U.S.’s suspension of duty-free treatment for imported packages under $800, effective August 29, will significantly impact exports.

For the first eight months of this year, China’s foreign trade rose 2.5% to $4.1 trillion. Exports increased by 5.9%, reaching $2.4 trillion, while imports decreased 2.2%, totaling $1.7 trillion.