China Export Pain Mounts as Tariffs Bite

November 27, 2019

China’s exports to the U.S. contracted heavily again last month as the ongoing trade impasse between the world’s two largest economies continued.

China’s export growth in greenback terms improved to a negative 0.9% year-over-year (y/y) in October, after a y/y decline of 3.2% in September.

Export growth to the U.S. rose to -16.2% y/y in October from -21.9% in September, due mainly to a low base in October 2018, noted Japanese financial services group Nomura.

Export growth to the U.S. last month was still below the monthly average growth of negative 15.1% in the third quarter, which the analyst suggested was due to “strong drag” from existing higher U.S. tariffs.

“Despite the upticks in October, we see strong headwinds for China’s export growth in coming months, given existing punitive U.S. tariffs, slowing global manufacturing and the tech downswing,” said Nomura.

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Source: American Shipper