China's Exports Growth Is Forecast to Slow in June

Forex News

China's exports growth is expected to have cooled only slightly in June amid growing trade tension between Beijing and Washington. Economists forecast Chinese exports growth of 10% year-on-year in June, down from a 12.6% rise in May. Imports growth is expected to remain solid at 20.8% in June, the third straight month of 20-plus percent growth, albeit slowing again from the 26% growth in May.

As a result, China's overall trade surplus is likely to widen to $27.61 billion in June from $24.92 billion in May. There was no separate forecast on China's trade surplus with the United States which has continued to grow even as its total surplus has narrowed over the last two years. China ran a $375 billion goods trade surplus with the United States in 2017.

It became known, that Trump administration intends to impose tariffs on an additional $200 billion of imports from China, sharply exacerbating tensions between the two largest economies of the world. This news aroused concern over trade relations between the US and China a few days after Washington imposed 25% import tariffs of $34 billion, and Beijing immediately responded to the corresponding tariffs for the same amount of US exports to China.