Trade

China’s trade with US slumps amid tariff war

China’s trade with the U.S., both in terms of exports and imports, dropped in September as the two countries have been mired in a tariff war.

Exports to the U.S., China’s largest foreign market, decreased by 21.9 percent to $36.5 billion in September, The Associated Press reported Monday, citing customs data. That marked a second consecutive monthly double-digit drop.

{mosads}China’s imports of U.S. goods fell 15.7 percent from the year prior to $10.6 billion, though that was better than the 22 percent decline in August. 

Chinese exports globally decreased 1.4 percent from a year earlier to $218.1 billion, the AP reported. Its imports decreased 5.8 percent to $178.5 billion.

China’s trade surplus with the U.S. declined by 16.5 percent from the previous year to $25.9 billion, although its global trade surplus expanded by 42.2 percent to $39.7 billion, according to the wire service. 

“The external environment facing China’s foreign trade development is still complicated and severe. Instability and uncertainty are increasing,” customs agency spokesman Li Kuiwen, said during a news conference, the AP reported.

After talks last week, President Trump said that the U.S. had reached a “phase one” trade deal with China, while Chinese Vice Premier Liu He said progress had been made. 

Treasury Secretary Steven Mnuchin told CNBC on Monday that he expects to have a deal, while warning that the latest tariffs will go into place on Dec. 15 if no agreement is clinched.