From Yahoo Finance: 2025-06-06 01:57:00

China’s exports likely slowed in May despite lower U.S. tariffs, projected to rise 5.0% compared to April’s 8.1% jump. Imports forecasted to drop 0.9%, increasing uncertainties in Sino-U.S. ties. A phone call between Trump and Xi Jinping kept tensions in check, but key trade issues remain unresolved.

China and U.S. struck a 90-day truce in tariff war, easing tensions. Lowering U.S. tariffs on China welcomed by policymakers. Economists divided on impact on China’s overall exports, with estimates ranging from 9.3% growth to a 2.5% drop. Tariff truce may trigger a new round of frontloading.

Nomura analysts estimate U.S. tariffs on Chinese imports could remain at about 42%, slowing China’s export growth in the second half of the year. Despite first-quarter economic growth beating expectations, persistent strains in China-U.S. ties remain. Factory data shows impact of tariffs on Chinese manufacturers.

China’s central bank cut benchmark lending rates to lessen impact of trade war on economy. May trade surplus forecasted at $101.3 billion, up from April’s $96.18 billion. Uncertainties in global trade order persist after Trump administration ordered a 90-day pause on reciprocal tariffs.

Read more: China’s exports likely slowed in May amid trade uncertainties: Reuters poll