China's exporters rush to beat Trump's next big tariff deadline

China’s exports regained momentum in June as firms rushed out orders to capitalize on a fragile tariff truce between Beijing and Washington ahead of a looming deadline next month, with shipments to Southeast Asian transit hubs particularly strong.

- 

Businesses on both sides of the Pacific are waiting to see whether the world’s two largest economies can agree on a more durable deal or if global supply chains will again be upended by the reimposition of duties exceeding 100%.

Chinese producers, facing weak demand at home and harsher conditions in the United States, where they sell more than $400 billion worth of goods annually, are also hedging their bets and racing to grab market share in economies closer to home.

Customs data on Monday showed outbound shipments from China rose 5.8% year-on-year in June, beating a forecast 5.0% increase in a Reuters poll and May’s 4.8% growth.

“There are some signs that frontloading demand is beginning to wane gradually,” said Chim Lee, senior analyst at the Economist Intelligence Unit. “While frontloading ahead of the August tariff pause deadline is likely to continue, freight rates for China-bound shipments to the US have started to decline.”

“Trade diversion and rerouting appear to be continuing, which will attract the attention of policymakers in the US and other markets,” he added.

Imports rebounded 1.1%, following a 3.4% decline in May. Economists had predicted a 1.3% rise.