China’s Export Growth Defies Tariffs Amid Trade Tensions with U.S.

China’s exports surged 8.1% year-on-year in April, significantly exceeding forecasts of 1.9%, despite escalating trade tensions with the U.S. While slower than March’s 12.4% growth, the figure highlights the limited impact of the ongoing tariff war on outbound trade volumes.

Imports also outperformed expectations, contracting less than anticipated, signaling steady domestic demand despite Beijing’s 125% retaliatory tariffs on U.S. goods. The resilience comes after the U.S. imposed a 145% tariff on Chinese imports in April, escalating the trade standoff.

China’s trade surplus narrowed to $96.18 billion from $102.64 billion in March, below the projected $97 billion. This contraction suggests diminishing monetary gains from exports, with Chinese exporters likely absorbing some tariff costs or rerouting shipments at reduced prices.

The robust export figures are supported in part by a sharp devaluation of the yuan, which boosted competitiveness, and by both nations exempting key goods from tariff hikes—particularly electronics and select industrial inputs.

The latest trade data precedes high-stakes negotiations between U.S. and Chinese officials this weekend. President Trump recently signaled a willingness to reduce tariffs to 50% if talks progress favorably. In response, China’s top trade official, Vice Minister Chunying Hua, stated that U.S. tariffs were unsustainable and reaffirmed Beijing’s readiness for all potential outcomes.

Despite rising protectionism, China’s trade performance in April suggests both resilience and strategic policy maneuvering amid geopolitical uncertainty. Market watchers now await the outcome of trade talks, which could reshape the global trade outlook in the coming months.