China has defied US President Donald Trump’s unprecedented tariff increases by posting stronger-than-expected export growth in April, potentially giving Chinese negotiators an advantage when they hold talks with their US counterparts in Switzerland at the weekend.
China’s April exports grew by 8.1 per cent year on year to US$315.69 billion, customs data showed on Friday.
The figure beat market expectations of a 1.9 per cent increase in a poll of economists by Reuters, and followed a 12.4 per cent rise in March.
“The damage of the US tariffs has not showed up in the trade data in April. This may be partly due to transshipment through other countries, and partly because of trade contracts that were signed before the tariffs were announced,” said Zhang Zhiwei, president and chief economist at Pinpoint Asset Management.
“I expect trade data will weaken in the next few months gradually. Hopefully the trade negotiation between China and the US can reach agreement soon and bring down tariffs to mitigate the shock to global trade.”
Trump has slapped tariffs of up to 145 per cent on a wide range of Chinese imports so far this year. In retaliation, China imposed duties of up to 125 per cent on American goods.