China trade surplus with US swells to record high as tit-for-tat tariff war escalates

 
Sebastian McCarthy
Fears Of Trade War Between U.S. And China Rise As Trump Threatens New Tariffs
China's trade surplus with the US climbed to $29bn in June (Source: Getty)

China’s trade surplus with the US jumped to its highest ever record last month, as tensions mount over the escalating tit-for-tat tariff war between the two economic superpowers.

New figures show that China’s trade balance with the US widened to $29bn (£22bn) in June, rising from $25bn in May.

However, Chinese exports into the US are likely to take a hit now that tariffs have officially been imposed by the US on $34bn of Chinese goods in a move that was reciprocated by Beijing.

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The latest data is fresh evidence of a growing trade imbalance between the two countries, as exports from China increasingly outweigh imports from the US.

Since January Chinese exports to the US have risen 13.6 per cent, compared with an 11.8 per cent increase in imports from the US.

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China’s commerce ministry confirmed last month that Chinese exporters were front-loading exports to the US before the expected tariffs began, meaning a potential slowdown in shipments towards the end of the year.

Such actions are only likely to increase after President Trump’s renewed trade threats earlier this week, in which the White House said it would consider another 10 per cent tariff on $200bn of Chinese imports which led China to vow that it would "fight back".

Analysts expect to see the impact of the tariffs in July's figures.

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