China exports fall in June with U.S. tariffs

China's exports fell in June, when the United States increased commercial pressure, while imports shrunked more than expected, pointing out additional difficulties in the world's second largest economy. The Chinese manufacturing companies are facing a weak demand in the country and abroad, and a strong increase in U.S. tariffs announced in May is threatening to compress the already reduced profit margins, reinforcing visions that Beijing needs to announce soon more Stimulus measures. Exports fell 1.3% compared to the previous year, in a better performance than the expectation of falling 2% of analysts consulted by Reuters. Still, they reversed an unexpected gain recorded in May. Imports declined 7.3%, a decrease higher than that of 4.5% estimated in Reuters research, after a contraction of 8.5% in May, suggesting that domestic demand remains weak despite a series of measures to stimulate economic growth since the year Past. With this, China recorded a trade surplus of 50.98 billion dollars last month, with a positive balance of 41.66 billion dollars in May. Analysts predicted a surplus of US $44.65 billion for June. "The latest increase in U.S. tariffs probably contributed to this decline (in exports), coupled with a broader slowdown in external demand," Capital Economics said in a statement. "We don't expect global growth to reach its worst moment next year. And while the truce between Trump and Xi at the G20 at the end of last month eliminates the immediate threat of new tariffs on the part of the US, our base scenario remains that trade negotiations will collapse again soon. " The month of June marked the first full month of U.S. higher tariffs on US $200 billion in Chinese products, implemented by Washington weeks before, after trade negotiations between the world's largest economies collapsed. While both sides agreed, at the end of June, to resume conversations and Washington said it would postpone additional charges, existing fares remain in place. No timetable has been set for the new round of trade negotiations, and the two largest economies in the world continue to disagree on important and necessary issues for an agreement, increasing the risk of a much longer and more costly battle. China's trade surplus with the United States, one of the main sources of friction with its largest trading partner, rose to US $29.92 billion in June, compared to US $26.9 billion in May. In the first half of the year, China's trade surplus with the US rose by about 5% to US $140.48 billion, compared to the positive balance of US $133.76 billion in the same period in 2018.