Overview

• China's imports fell 8.4% year-on-year in January and February, significantly missing economists' forecasts of 1% growth.
• Export growth slowed to 2.3%, down from 10.7% in December 2024, as new U.S. tariffs took effect in February and March.
• President Trump imposed additional tariffs on Chinese goods, citing fentanyl concerns, prompting China's retaliatory measures on U.S. agriculture and select firms.
• Analysts attribute the import decline to weak domestic demand and reduced purchases of key commodities like crude oil and iron ore.
• Chinese policymakers have set a 2025 growth target of 5% but face pressure to boost domestic consumption and reduce reliance on exports.