Friday, 13 July 2018

Amid tensions, China's trade surplus with US sees record growth in June

US China trade war

China's trade surplus with the United States swelled to a record in June as its overall exports remained solid, a result that could further inflame a bitter trade dispute with Washington.

The data came after the administration of US President Donald Trump raised the stakes in its trade row with China on Tuesday, saying it would slap 10 percent tariffs on an extra $200 billion worth of Chinese imports, including numerous consumer items.

China's trade surplus with the United States, which is at the centre of the tariff tussle, widened to a record monthly high of $28.97 billion, up from $24.58 billion in May, according to Reuters calculations based on official data going back to 2008.

Trump, who has demanded Beijing cut the trade surplus, could use the latest result to further ratchet up pressure on China after both sides last week imposed tit-for-tat tariffs on $34 billion of each other's goods. Washington has warned it may ultimately impose tariffs on more than $500 billion worth of Chinese goods - nearly the total amount of US imports from China last year.

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