China’s shipments to U.S. plunge 33% in August as overall exports growth hits a 6-month low

China’s exports to the U.S. plunged 33% in August while overall growth slowed to its weakest in six months, weighed down in part by President Donald Trump’s crackdown on transshipments and as the impact of frontloading exports wanes.

Imports from the U.S. also dropped 16% from a year ago, customs data showed.

China’s overall exports climbed 4.4% in August in U.S. dollar terms from a year earlier, customs data showed Monday, marking their lowest growth since February while missing Reuters-polled economists’ estimates for a 5.0% rise.

That growth slowed from the prior two months, in part reflecting the statistical effect of a high base last year when China’s exports grew at their fastest pace in nearly one-and-a-half years.

“With the temporary boost from the U.S.-China trade truce fading and the U.S. raising tariffs on shipments rerouted via other countries, exports are likely to come under pressure in the near term,” said Zichun Huang, China economist at Capital Economics said in a note.

Huang pointed out that exports were little changed on a seasonally adjusted month-on-month basis, with the slowdown in the headline figure mainly reflecting last year’s high base.

Imports rose 1.3% last month from a year ago, missing Reuters estimates for a 3% growth. Imports rose for a third straight month after returning to growth in June, albeit still muted due to the persistent real estate slump, rising job insecurity, among other things.

China has increasingly relied on alternative markets, particularly Southeast Asia and European Union nations, Africa and Latin America, as U.S. President Donald Trump’s trade policy has pressured U.S.-bound shipments.

Going abroad

“Chinese exporters have been pushing for higher market share in other countries due to weak domestic demand in China. This ‘going abroad’ initiative likely contributed to the resilience of Chinese exports so far this year,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.

The country’s shipment to the European Union bloc, the Association of Southeast Asian Nations and Africa surged 10.4%, 22.5% and nearly 26% in August, respectively.

This year through August, China’s exports to the U.S. dropped 15.5% from the same period last year, while imports declined 11%. Over that same period, its exports to EU, ASEAN, Africa and Latin America surged 7.7%, 14.6%, 24.6% and nearly 6%, respectively.