In overall terms, the numbers here were much better than expected as China exports in particular held up. However, the devil is always in the details. China’s exports to the US actually fell by nearly 18% on the month from March to April. So, what gives?
It is basically this: How China has been preparing itself ahead of this tariffs eventuality with the US
China is pretty much just rerouting goods by origin washing as exports to Vietnam especially surged on the month.
The good news for the US is that perhaps this might even just be a temporary thing. After speaking to US retailers last week, Trump looks to have given some assurance of sorts as we’re starting to even see a pick up in China container ships leaving for the US now:
Is this a start of a return to some form of new normality? If so, it’s possibly a hint that the US will lower China tariffs as we look to talks over the weekend.
ForexLive.com
is evolving into
investingLive.com, a new destination for intelligent market updates and smarter
decision-making for investors and traders alike.
