China's Exports to the US Plummet While Global Trade Continues to Surge

In September 2025, China's exports to the United States declined by 27% year-on-year, marking the sixth consecutive month of decrease amid escalating trade tensions. Despite this downturn, China's global exports rose by 8.3% to $328.5 billion, the highest increase in six months, surpassing economists' expectations. Imports also grew by 7.4%, indicating improved trade activity, though domestic economic challenges and a struggling real estate sector continued to hinder consumption.

The decline in U.S.-bound exports was influenced by President Donald Trump's efforts to encourage manufacturers to return to the U.S., implementing tariffs and other measures. In response, China has shifted its focus to other markets, with exports to Southeast Asia, Latin America, and Africa increasing by 15.6%, 15%, and 56%, respectively.

Trade tensions intensified after Trump proposed an additional 100% tariff and new export controls, prompting retaliatory port fees and export restrictions from China. The friction casts doubt on an expected meeting between Trump and President Xi Jinping and undermines progress toward a comprehensive trade deal. Economists warn that further export controls could disrupt global supply chains, posing longer-term risks.

Additionally, China's rare earth exports fell sharply in September, declining by 31% from August, marking the third consecutive month of decreases and reaching the lowest levels since February. This decline follows China's export restrictions introduced in April in response to U.S. tariffs, resulting in global shortages.

These developments highlight the ongoing volatility in U.S.-China trade relations and their broader implications for global trade dynamics.