A stark drop in Chinese language exports to the US in Might 2025 — down 34.5% year-on-year — alerts a deepening of the US-China commerce struggle and a fast realignment of world commerce routes. As per recent information from China Customs and India’s Commerce Ministry, the shift is already influencing commerce patterns throughout Asia and past.
Whereas China’s total exports rose modestly by 4.6% to $316.2 billion, its shipments to the US fell from $44 billion to $28.8 billion. To counterbalance this, China ramped up exports to the EU, ASEAN and India. Shipments to India alone climbed 12.4% to $11.13 billion, elevating the chance of potential dumping as Beijing seems for different markets.
India’s commerce profile displays this churn. Total merchandise imports dropped barely to $60.6 billion, however non-oil, non-gold imports surged by 12% to $41.2 billion. GST information underscores this, with IGST collections on imports leaping 72.9% — from ₹24,510 crore in Might 2024 to ₹42,370 crore this yr.
Two sectors stood out: electronics imports rose 27.5% to $9.1 billion, and equipment/computer systems elevated 22% to $5 billion. India’s imports from China and Hong Kong collectively surged 22.4% to $12 billion.
On the export entrance, India gained from the commerce struggle fallout, with shipments to the US rising 17.3% to $8.8 billion, aided by stronger smartphone exports.
However amid international instability — rising Center East tensions and creeping protectionism — India’s commerce outlook stays unsure. “India should tread fastidiously,” the GTRI temporary warns, urging balanced commerce offers and stronger home reforms to safeguard financial resilience.
As tensions mount between the US and China, tariff negotiations stay a crucial flashpoint within the unfolding commerce struggle below Donald Trump’s administration. Washington’s aggressive tariff hikes have triggered sharp retaliations from Beijing, pushing each side right into a protracted financial standoff.
Whereas talks have often resumed, progress stays unsure, hampered by strategic distrust and competing geopolitical pursuits. The collapse in bilateral commerce — exemplified by a 34.5% drop in China’s exports to the US in Might 2025 — provides stress for a breakthrough. Nonetheless, any decision hinges on whether or not the 2 governments can align on tariff rollbacks and enforcement mechanisms with out showing to concede politically.
