China’s exports surged in June, rising 5.8% from a year earlier, driven by strong demand ahead of an August tariff deadline. Imports also grew by 1.1%, marking the first increase this year. Despite a 16% drop in exports to the U.S., trade tensions remain high.

Following a truce between the U.S. and China, retailers resumed imports from China after halting shipments due to new tariffs. However, preliminary discussions have not yielded significant progress, leading to uncertainty for companies. The Trump administration has increased tariffs by 30%, pending a deadline in August.

The trade recovery is expected to boost economic growth in the second quarter, but long-term outlook remains uncertain. Capital Economics predicts slowing export growth due to high tariffs. China’s global trade hit a record of over $2.8 trillion in the first half of the year, with a trade surplus of $586 billion.

Despite challenges with the U.S., China’s trade with Southeast Asia and Europe remained strong. Exports to Southeast Asia saw significant growth, while trade with Europe climbed 6.6% in the first half. However, auto exports suffered due to higher EU tariffs, with electric vehicle exports dropping nearly 38%.

Read more at Yahoo Finance: China’s exports jump 5.8% in June as tariffs reprieve prompts a rush of orders