Trade between the United States and China expanded nearly 12% in May compared to the previous month, reaching $32.63 billion. According to US statistics, the primary driver of this growth was a sharp increase in the supply of Chinese goods.
In May, imports from China surged by 19% to $23.51 billion, up from $19.79 billion in April. In contrast, US exports to China saw a slight decline, dropping 3% to $9.12 billion. This divergent trend resulted in the US trade deficit with China soaring from $10.39 billion to $14.39 billion within the month.
The May spike comes amid a year-long trade agreement reached at the end of October last year, when US President Donald Trump and Chinese President Xi Jinping held talks at the Gimhae Air Base in Busan, South Korea.
As part of this deal, Washington agreed to reduce the overall tariffs on Chinese goods from 57% to 47%. The easing of trade restrictions was primarily achieved by halving fentanyl-related tariffs from 20% to 10%. In response, the Chinese leader greenlighted the purchase of American agricultural products.