Decline in China's export orders observed in April
Tariffs All Over the Place: As U.S. imports of Chinese goods become more expensive, China's economy feels the sting, according to recent surveys. On April 30, 2025, the China Federation of Logistics and Purchasing released their monthly report, revealing export orders had slowed down in April. This slowdown comes as a result of the standoff between Beijing and Washington, after U.S. President Donald Trump set tariffs of up to a whopping 145% on certain Chinese goods.
China, in response, has slapped duties of up to 125% on U.S. products, excluding a few exceptions. They've also taken other measures like tightening the reins on exports of strategically important minerals, such as those used in electric vehicles.
Negative sentiment seems to be impacting China's economy, with the official manufacturing purchasing managers index falling to a 16-month low of 49 from 50.5 in March. According to Zichun Huang of Capital Economics, this suggests China is under considerable pressure as external demand cools off.
Experts believe the tariff hikes could have severe repercussions for both economies, with the U.S. experiencing a 2.3% price surge—equivalent to $3,800 per household per year—and China potentially witnessing a drop in GDP growth similar to 0.9 percentage points in 2025. This, in turn, could slow down China's long-term growth by 0.6% annually.
It's clear that these tariff wars are causing a ripple effect, disrupting global trade, and potentially harming consumers. But as the situation unfolds, it remains to be seen how the two powerhouses will navigate this tricky terrain to avoid a full-blown trade war.
- The surge in tariffs between the U.S. and China has led to a slowdown in China's export orders, as indicated by the China Federation of Logistics and Purchasing's monthly report from April 30, 2025.
- The official manufacturing purchasing managers index (PMI) in China fell to a 16-month low of 49 in April, suggesting external demand is cooling off and China is under considerable pressure.
- Financial experts believe the tariff hikes could result in a 2.3% price surge in the U.S., equivalent to $3,800 per household per year, and a drop in China's GDP growth similar to 0.9 percentage points in 2025.
- Zichun Huang of Capital Economics suggests China's long-term growth could slow down by 0.6% annually due to the potential severe repercussions of the tariff increases on both economies.
