China’s exports jumped 7.2% in July compared to the same month last year, while imports increased at their fastest pace in a year. This boost comes as businesses capitalize on a temporary truce in the ongoing trade tensions with the United States.
However, analysts caution that part of this growth reflects a low comparison base from July 2024. Trade data shows exports to the U.S. dropped sharply by nearly 22% year-over-year, and imports from America fell almost 19%. Meanwhile, shipments to markets like Africa and Southeast Asia surged by double-digit percentages as Chinese companies redirected their sales to other regions.
The tariffs on Chinese products remain a separate issue from the new, higher tariffs that went into effect Thursday on imports from various U.S. trading partners.
China’s trade surplus reached $683.5 billion by the end of July 2025, about one-third higher than the surplus from the same period last year. For July alone, the surplus was $98.2 billion, with exports to the U.S. exceeding imports from America by $23.7 billion.
U.S. imports from China are currently subject to tariffs of at least 30%, with some facing even steeper duties. Earlier, the Trump administration had imposed rates as high as 245%, and China responded with retaliatory tariffs. The two countries agreed to pause further tariff hikes to allow for negotiations, though it remains uncertain whether the truce will be extended beyond the August 12 deadline following recent talks in Sweden.
Additionally, the U.S. has increased tariffs on goods it suspects are “transshipped” through third countries to avoid Chinese tariffs. For example, imports from Vietnam now face a 20% duty, but for goods deemed transshipped, the tariff jumps to 40%.
“With demand boosted temporarily by the U.S.-China trade truce fading, and tariffs rising on rerouted shipments, Chinese exports are expected to remain under pressure in the near term,” said Zichun Huang of Capital Economics.
Economists had predicted China’s dollar-denominated exports would grow by less than 6% in July, similar to June’s 5.8% growth rate. Still, stronger trade with other global partners has helped offset the impact of the trade war.
Imports increased 4.1% in July from a year earlier, the highest since July 2024, driven by higher shipments of crude oil, copper, and soybeans.
China’s exports of rare earth minerals—crucial for many high-tech products—fell 17.6% in July, improving from a nearly 50% drop in June. For the January to July period, rare earth exports declined 24.2% in dollar terms but rose over 13% by volume. Ensuring access to these minerals has been a major focus of U.S. trade negotiations, with China pledging to ease some export controls.
Other sectors showing strong export growth included vehicles, fertilizers, ships, and auto parts.
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