The Chinese trade surplus with the U.S. hit a record number in June as its exports grew at a solid pace, something that could possibly make a trade dispute with Washington, D.C., that much worse.
A Nasdaq.com article points out that it could be a “one-off” as Chinese exporters were rushing to get shipments out before tariffs went into effect during the first week in July. Analysts say the trade balance will be much less in China’s favor during the months ahead as tariffs take a bite out of their business.
China’s trade surplus with America is a key component of the trade dispute and it widened to a record monthly high of $28.97 billion.
One analyst tells Nasdaq that “the record surplus won’t help the already sour relations and escalating tensions.” President Trump has demanded that China cut into that trade surplus, threatening to eventually impose tariffs on a total of $500 billion in Chinese imports.
The dispute between the two largest economies in the world has jolted global financial markets and triggered worries of a full-scale trade war possibly derailing the world economy.