China's Trade Slows as U.S. Tariffs Escalate

Imports drop sharply and export growth weakens in early 2025, reflecting trade tensions and domestic economic challenges.

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.