China's trade surplus with USA swells in June

13 July, 2018, 22:53 | Author: Eric Barnett
  • How a trade war with China hurts US farmers

China's monthly trade surplus with the U.S. hit a record high of almost $29bn (£22bn) in June as exports to America remained strong.

Last week, the United States and China introduced tariffs of 25 percent on $34 billion of each other's exports.

As the world's largest exporter, China has threatened retaliatory action against the tariffs and pledged that it would lodge a complaint with the World Trade Organization.

In the first half of the year, Chinese exports to the USA increased 13.6 percent as compared to the same period in 2017, while imports from the US only rose 11.8 percent.

Firing the first shots in a trade war that has rattled financial markets and raised risks to the global economy, Washington last week imposed 25 percent tariffs on $34 billion of Chinese imports, drawing rapid retaliatory duties by Beijing on the same amount of USA exports to China.

However, a lower yuan would make it more expensive for China to import United States goods.

Growth in imports for June showed a moderate slowdown from May, official data showed on Friday.


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

Earlier on Thursday, President Donald Trump said the United States was in a nasty trade battle with China, but things would ultimately work out.

But comments from China's commerce ministry indicated that June's figures are a blip, a result of Chinese companies pushing to get products out the door before the tariffs went into effect, according to Reuters.

Imports grew 14.1 percent in June, customs said, missing analysts' forecast of a 20.8 percent growth, and compared with a 26 percent rise in May.

But in a statement coming from the Chinese Commerce Ministry, The Asian nation said the surplus was overestimated and caused by America's own "domestic structural problems".

The spiralling battle with Beijing shows no signs of cooling down, and observers warn the impact will begin to hurt soon as China's economy struggles with slowing growth just as leaders try to battle a worryingly large debt mountain. This reduces the domestic pressure on the United States to resolve its trade disputes with China, Canada, Mexico and Europe, which triggered the new tariffs. Its trade surplus with the U.S. over the same period was $133.76bn, up from $117.51bn past year.

China's trade surplus with the United States, which is at the centre of the tariff tussle, widened to a record monthly high of $28.97 billion, up from $24.58 billion in May, according to Reuters calculations based on official data going back to 2008. China retaliated with higher duties on a similar amount of American goods.

Recommended:



Popular

The REAL Reason Brock Lesnar Wasn't Mentioned On WWE Raw This Week
Well, the UFC, WWE or someone has to figure out what's going on in Lesnar's mouth before any talks of a title fight move forward. On Thursday, Wrestling Observer reported that Lesnar will be wrestling at SummerSlam which was a concern of some fans.

Rays suspend Papa John's pizza promotion
Papa John's International Inc. began operations in 1984 and had more than 5,200 locations globally. During the call, he reportedly said "Colonel Sanders called blacks n--" and never faced backlash.

Trump says committed to North Atlantic Treaty Organisation as allies agree to boost defense spending
He then took a question from Fox News regarding his upcoming meeting with Russian President Vladimir Putin . Trump first met May Thursday night and the pair spoke for about 90 minutes and attended a state dinner.

Rosenstein says 12 Russian intel officers indicted in special counsel's probe
And the announcement came at the same time that Trump and the first lady were meeting at Windsor Castle with the Queen. Attorney General Rod Rosenstein convened a press conference at the Justice Department on Friday.

Google Chrome adds new Spectre fix, but uses more RAM in return
The feature looked to improve stability, while making the internet browser more resistant to attacks such as Spectre. Using a separate renderer for every domain means more active renderers, and thus, more memory usage.

Throne Speech Opens Parliament to Take Action to Help the People
A local group is opposed to the turbines and warns that they will harm the rural character of the region. The PCs say the project received approval to proceed during the election period.

Chelsea players take first training session after learning of Antonio Conte sacking
Jorginho is expected to join Sarri from Napoli but star man Eden Hazard continues to be linked with a move away from west London . In May, Napoli appointed Carlo Ancelotti to replace Sarri amid speculation that the latter could take the Chelsea job.

‘Do not eat this cereal’: CDC links Honey Smacks, salmonella
Common effects of salmonella is the result of a fever, cramps, or diarrhea within 12 to 72 hours of being exposed to the bacteria. When the Miami Herald filed a Freedom of Information Act request for the inspection of the facility, the FDA denied the request.

Global recall of heart drug due to potential carcinogen contamination
Health Canada says patients taking the drug should check with their pharmacists to learn if their medicine is being recalled. Some of these drugs are also used in patients who have had heart failure or a recent heart attack.

Chris downgraded to tropical storm, still moving away from NC coast
It was headed northeast at 22 miles per hour , on track to hit Canada's easternmost province this weekend. At 6am, Chris was 530 miles west of Bermuda, with winds of about 70mph and higher gusts.