Key Points
- Chinese exports to the U.S. have remained surprisingly resilient despite tariffs of up to 55%.
- About a billion dollars’ worth of Chinese goods are still being imported into the U.S. every day.
- Some products, like e-bikes and copper, have even seen an increase in exports.
- This shows how difficult it is for U.S. companies to replace their Chinese suppliers.
Six months into President Trump’s trade war, a surprising trend is emerging: Chinese exports to the United States are proving remarkably resilient. Despite facing tariffs as high as 55%, a steady stream of about a billion dollars’ worth of goods is still crossing the Pacific every day.
The latest data shows that while overall trade has dropped, some Chinese products, like e-cigarettes, e-bikes, and copper, have actually seen an increase in exports to the U.S. compared to last year. This highlights just how deeply intertwined the two economies are and how difficult it is for American companies to find alternatives to Chinese suppliers, at least in the short term.
“China’s strong position in global supply chains gives it some bargaining power with US importers in the near term,” wrote Bloomberg economists.
This resilience is giving Chinese President Xi Jinping more leverage as he prepares to meet with President Trump in South Korea next week to discuss a potential extension of the current tariff truce.
Part of the reason for the continued trade is that American importers are finding ways around the tariffs. Some are likely taking advantage of loopholes, like trans-shipping goods through Mexico or Vietnam, to avoid paying the full tax.
While some sectors, like TVs and video game consoles, have seen a collapse in exports from China as companies shift production elsewhere, the overall trade flow remains substantial. It’s a clear sign that a full “decoupling” of the world’s two largest economies is much easier said than done.
