China's Imports Of US Goods Plunge Amid Tariff Retaliation

China’s imports of key US products, including cotton, cars, and energy items, have dropped sharply in the first two months of 2025, following President Donald Trump’s imposition of tariffs and Beijing’s retaliatory measures. The latest figures reveal a significant decline in Chinese purchases of American goods.

Imports of cotton from the US plummeted by nearly 80% year-on-year, while large-engine cars saw a nearly 70% drop. Additionally, purchases of crude oil and liquefied natural gas (LNG) fell by over 40%. These declines are directly linked to retaliatory tariffs imposed by China in response to the US’ trade actions, with tariffs taking effect in February and March.

The escalating trade conflict between the US and China has created widespread uncertainty, with businesses in the region facing higher costs and disruptions. In response to the rising tariff burdens, Chinese companies have already begun reducing the export of smaller goods. Meanwhile, major US retailers like Walmart have called for price reductions to offset the impact of the tariffs.

Despite the broader downturn in trade, some US exports to China saw notable gains. Soybean imports surged by almost 50%, reaching $4.2 billion ahead of new tariffs implemented in March. Furthermore, Chinese demand for processors and chips nearly doubled, contributing to an overall 2.7% increase in total US imports, which amounted to nearly $27 billion in the first two months of this year.

However, not all sectors have experienced growth. Imports of machinery used in semiconductor manufacturing dropped by one-third, as China continues to grapple with US export restrictions on high-tech equipment. Despite these restrictions, Chinese companies have continued to buy less advanced machinery, indicating ongoing shifts in trade patterns.

The ongoing trade war between the US and China shows no signs of abating, and with the potential for further tariff increases, the global trade landscape remains uncertain.