U.S.-China trade fell into freefall

President Donald Trump’s tariff escalation in April 2025 pushed U.S.-China trade into a steep decline that is still visible in the latest government data. U.S. goods imports from China fell to $308.4 billion in 2025 from $438.7 billion in 2024, while U.S. exports to China dropped to $106.3 billion from $143.2 billion, according to the U.S. Trade Representative and Census Bureau. The White House later suspended part of the new duties and left a 10% reciprocal tariff in place during talks, but the trade relationship did not return to its earlier levels. Companies on both sides reorganized suppliers, production and shipping routes as the tariff fight spread through 2025. ### How big was the drop in trade? U.S. Trade Representative data shows U.S. goods trade with China totaled $414.7 billion in 2025, down from $582.0 billion in 2024. The U.S. goods trade deficit with China narrowed to $202.1 billion in 2025 from $295.5 billion a year earlier. Census Bureau monthly figures show the decline was concentrated after the tariff shock. U.S. imports from China were $41.6 billion in January 2025, then fell to $25.4 billion in April and $20.5 billion in May. U.S. exports to China fell from $9.9 billion in January 2025 to $6.6 billion in May 2025. ### Where did the tariff spike come from? White House orders in April 2025 raised duties on Chinese goods after Beijing retaliated against earlier U.S. tariff actions. (ustr.gov) A May 12, 2025 joint statement said Washington would suspend 24 percentage points of the added ad valorem rate for 90 days while keeping a remaining 10% rate, and remove the modified additional rates imposed by the April 8 and April 9 orders. (census.gov) The May 12 statement also said China would make matching changes on U.S. goods and remove non-tariff countermeasures taken since April 2, 2025. The two sides said they would create a mechanism for continued discussions led by Chinese Vice Premier He Lifeng, U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer. (whitehouse.gov) ### Why didn’t trade rebound after the pause? The White House said on August 11, 2025 that the suspension of the heightened tariffs would continue until November 10, 2025, while the 10% reciprocal tariff remained in effect and other U.S. tariff measures on China stayed in place. That meant companies were planning around a lower but still active tariff wall, not a full rollback. (whitehouse.gov) September 13, 2024 USTR action had already preserved and expanded separate Section 301 tariffs on selected Chinese goods after a four-year review. USTR said those changes targeted Chinese practices tied to technology transfer, intellectual property and innovation. By the time the 2025 reciprocal tariffs arrived, many importers were already dealing with layered trade restrictions rather than a single temporary measure. (whitehouse.gov) ### What changed for companies? The 2025 trade data shows companies cut direct China purchases much faster than overall U.S. goods imports. U.S. imports from the world totaled $5.31 trillion in 2024, according to Census Bureau data, while China’s share dropped sharply in 2025 as buyers shifted orders elsewhere. That pattern indicates rerouting and supplier changes rather than a broad halt in U.S. import demand. (ustr.gov) The White House framed the policy as leverage for negotiations, while USTR continued to describe China tariffs as a response to unfair trade practices. Neither government’s published statements said the 2025 measures would quickly restore pre-tariff trade volumes. ### What should readers watch next? The Census Bureau updates its China trade tables each month, and the 2026 figures already show U.S. imports from China at $60.9 billion and exports at $27.4 billion through March. (census.gov) The White House and USTR have also tied future tariff settings to the progress of talks with Beijing. Any new public marker is likely to come from three places: a Census monthly trade release, a White House order on tariff rates, or statements from He Lifeng, Scott Bessent and Jamieson Greer after another round of talks. (whitehouse.gov) (census.gov)