China trade surplus with United States hits record high in June

How a trade war with China hurts US farmers

How a trade war with China hurts US farmers

Beijing announced Friday that China's surplus with the USA hit an all-time high of $28.97 billion (€24.85 billion) in June, with exports reaching a record $42.62 billion in June.

Official data shows China's monthly trade surplus with the USA was almost 29-billion-dollars.

China's total exports rose 11.3% year-on-year in June, beating a Bloomberg News forecast of 9.5%.

Firing the first shots in a trade war that has rattled financial markets and raised risks to the global economy, Washington last week imposed 25 percent tariffs on $34 billion of Chinese imports, drawing rapid retaliatory duties by Beijing on the same amount of USA exports to China. That leaves about $80 billion for penalty tariffs after Beijing's previous increases either imposed or threatened on a total of $50 billion of USA goods are counted.

China's June trade grew by double digits amid mounting tensions with Washington but Beijing warned its exporters to face "rising instabilities and uncertainties".

After a strong start to the year, growth in China's exports has moderated recently, and is expected to face more pressure from the initial round of USA tariffs. Our economy will be affected in two ways: through lower world economic growth and, more significantly, from a slowing down of the Chinese economy.

China is running out of American goods for retaliatory tariffs due to their lopsided trade balance. Both official and private business surveys reported softer export orders last month as the trade row deepens.

Imports expanded by 14.1 per cent to $175.1 billion, down from the previous month's 26 per cent.

"Trade wars are not easy to win", he said.

For January-June, it rose to $133.76 billion, compared with about $117.51 billion in the same period previous year.

China imported American goods worth $13.6 billion in June while exporting $42.6 billion to the United States.

In yuan terms, China's exports grew 3.1% in June and imports rose 6.0%.

But, he said, China has another option - Beijing could reduce the impact of United States tariffs on exporters by devaluing the yuan to make its goods cheaper for American consumers.

Separate customs data on Friday showed imports of commodities from soybeans to crude oil eased compared with a year ago, but China's steel mills and aluminium smelters sold much more overseas spurred by higher worldwide prices amid growing concerns about slowing demand growth.

"We expect slowing export growth to put downward pressure on the current account and RMB (yuan), and believe China is likely to be willing to make concessions in future rounds of trade negotiations with the U.S.", Nomura analysts said in a note to clients.

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