China's export orders fall due to Trump's trade war

Steep U.S. tariffs are starting to squeeze the Chinese economy.

- Jason Douglas

China's economy showed its first big signs of damage from the trade war, as steep U.S. tariffs pummeled export orders and production at the country's factories.

A gauge of new export orders fell in April to its lowest reading since Covid-19 was ravaging the country in 2022, while overall manufacturing activity in China was the weakest in more than a year, according to surveys published Wednesday by China's National Bureau of Statistics.

The sharp pullback shows Trump's eye-watering tariffs on Chinese imports are starting to squeeze the engine room of China's economy, piling pressure on Beijing to boost its stimulus efforts to shore up growth.

It also adds to pressure on leader Xi Jinping to reach a deal on trade with President Trump—though for now the clear message from Beijing is one of resolute defiance in the teeth of what it describes as U.S. bullying.

A similar measure of new export orders plunged even more steeply, sinking to 44.7 in April, the lowest reading since December 2022, an early sign that trade between the U.S. and China is in danger of drying up as American importers cancel or delay orders after a rush to bring in goods earlier this year before tariffs came into effect.

Trump in his second term has hit Chinese imports with tariffs of 145% as part of a much broader assault aimed at rewiring U.S. trade with the world.