Chinese exports rose over the past month even as the Trump administration’s punitive tariffs kick in.
China’s exports to the U.S. rose by 13 percent in October, according to customs data released Thursday. The U.S. imports to China, on the other hand, declined 1.8 percent in October from the previous year, a downward trend from the previous month’s decline of 1.2 percent. China’s trade gap with the U.S. was at $31.8 billion in October, down slightly from September’s $34.1 billion. Chinese exports to other parts of the world also rose.
The news of the higher exports comes as the administration is planning for a meeting later this month between President Trump and Chinese President Xi Jinping in Argentina.
The figures suggest that the administration’s aggressive efforts to reverse the trade deficit with China through tariffs and other measures are not yet having the intended effect, despite some administration claims that Beijing is on the ropes.
Some economists believe the current data shows that China is flooding the market now in order to get its exports out before the tariffs rise in 2019, and therefore the current export levels cannot be sustained.
Administration sources have leaked to news agencies last week that tariffs covering as much as $257 billion worth of Chinese goods could be announced next month. The U.S. has already hit $250 billion worth of Chinese goods with tariffs ranging from 10 to 25 percent. Starting next year those tariffs will become 25 percent across the board.
Placing the total covered with tariffs at a half-trillion would cover all imports to the U.S. The additional tariffs may come if little progress is made when Trump meets with Jinping at the G20 summit in Argentina. The White House has expressed cautious optimism that the meeting could ease tension. “We’re going to try and make a deal with China because I want to have great relationships with President Xi, as I do, and also with China,” the president said Wednesday.
He argued the trade policies were working. “If you know, China has come down tremendously. Tremendously. China would have superseded us in two years as an economic power; now, they’re not even close,” Trump said.
