Chinese exports increased less than expected in May, driven by a significant decline in shipments to the US.
Total exports increased 5% to $316 billion, below economists’ expectations of 6% growth.
Exports to the US fell 34.5% during the month, according to Bloomberg News calculations.
This marked the sharpest drop in Chinese exports to the US since February 2020, when global trade was curbed by the COVID-19 pandemic.
The decrease occurred despite a temporary tariff reprieve agreed upon in May, which eased some of the previously announced tariffs that could have reached up to 145% on certain Chinese imports to the US.
It is expected that the decline in exports to the US will continue for some time before recovering to previous levels.
Chinese exports to other countries increased by 11% in May. Exports to Southeast Asia grew by nearly 15% and to the European Union by 12%.