China's Export Surge: Navigating the US Tariff Turbulence

China's exports experienced a notable boost in June, driven by a temporary suspension of US tariffs that ignited a flurry of orders from businesses and consumers. According to customs data released Monday, exports surged 5.8% compared to a year ago, up from a 4.8% increase in May.

Imports also showed signs of recovery, with a 1.1% increase, marking the first upward trend this year. Although exports to the United States fell 16%, this was an improvement over the 34.5% drop recorded in May.

After President Donald Trump imposed tariffs of up to 245% on Chinese imports, and China retaliated with its own high duties, both countries decided to halt further increases to facilitate negotiations. Despite this, preliminary talks have not resulted in significant progress. Meanwhile, the Trump administration escalated tariffs on Chinese imports by 35%, ahead of an August 12 deadline, complicating the trade dynamic further. China's economic growth figures for the April to June quarter, anticipated on Tuesday, are expected to reflect the impact of this trade recovery.

(With inputs from agencies.)