Chinese Exports To U.S. Decrease Amid Trade War
Tariffs on Chinese goods have led to a decrease in Chinese exports to the U.S.
In September, Chinese exports decreased by 22%. This is an increase from the 16% decrease in exports last August. The decreasing exports are a result of the trade war currently occurring with China. No deal has been made to definitively end the trade war and it is having its impact on the economy.
However, a short-term truce was arranged between the U.S. and China. President Donald Trump will not move forward with the planned tariffs on $250 billion worth of Chinese goods with the condition that China buy $40-50 billion worth of agricultural goods from the U.S. This truce will allow for both countries to regroup and determine how to move forward in the trade war.
“The mini trade deal was aimed at damage control, or stop things from getting worse. It’s unrealistic to expect Chinese trade or the global economy to recover any time soon,” said Larry Hu, an economist with Macquarie Group Ltd.
Some hope that the first part of a deal will be signed at the Asia-Pacific Cooperation Summit in Chile this November. Additionally, Trump has not yet decided about whether to move forward with further tariffs in December.