China-US trade surplus up 19.4 per cent in Q1; down in March

China’s trade surplus with the United States rose 19.4 per cent YoY in the first quarter to US$58.25 billion, showed data released by China’s custom department. China’s exports to the US rose 14.8 per cent YoY, while imports grew 8.9 per cent YoY.

However, China’s exports growth fell in March; its the first drop since February last year. China’s March exports fell 2.7 per cent from the year earlier.

The data follows a month of tit for tat tariff threats by US and China, ignited by the US admin’s frustration with China’s massive trade surplus and intellectual property policies. US feels that China’s US$375 billion trade surplus with it is unacceptable, and wants China to reduce it by US$100 billion.

Since there is no fixed timeline set by either Washington or Beijing for the actual imposition of tariffs, it is expected that the doors are still open for negotiations and a possible compromise would be worked out to limit the damages to both the sides.