China’s trade with US slumps amid tariff war

China’s trade with the U.S., both in terms of exports and imports, dropped in September as the two countries have been mired in a tariff war.

Exports to the U.S., China’s largest foreign market, decreased by 21.9 percent to $36.5 billion in September, The Associated Press reported Monday, citing customs data. That marked a second consecutive monthly double-digit drop.

{mosads}China’s imports of U.S. goods fell 15.7 percent from the year prior to $10.6 billion, though that was better than the 22 percent decline in August. 

Chinese exports globally decreased 1.4 percent from a year earlier to $218.1 billion, the AP reported. Its imports decreased 5.8 percent to $178.5 billion.

China’s trade surplus with the U.S. declined by 16.5 percent from the previous year to $25.9 billion, although its global trade surplus expanded by 42.2 percent to $39.7 billion, according to the wire service. 

“The external environment facing China’s foreign trade development is still complicated and severe. Instability and uncertainty are increasing,” customs agency spokesman Li Kuiwen, said during a news conference, the AP reported.

After talks last week, President Trump said that the U.S. had reached a “phase one” trade deal with China, while Chinese Vice Premier Liu He said progress had been made. 

Treasury Secretary Steven Mnuchin told CNBC on Monday that he expects to have a deal, while warning that the latest tariffs will go into place on Dec. 15 if no agreement is clinched.