China's Exports Surge In March Before Trump Tariffs Clamp Down On Trade

China's exports rose sharply in March as businesses attempted to get more shipments out of the country before fresh U.S. tariffs set in.

According to a Reuters poll, the country's exports rose 12.4% last month in U.S. dollar terms compared to a year earlier, sailing past expectations of a 4.4% rise.

Meanwhile, imports to the country fell 4.3% in March, compared to economists' projections of 2%, leaving China with a trade surplus of $103 billion last month.

China’s shipments to Southeast Asian countries surged, with exports to Vietnam jumping 19%.

Many companies likely frontloaded shipments in March to avoid the tariffs pledged by President Donald Trump's administration.

The U.S. has imposed a steep tariff rate of 145% on Chinese imports after Beijing retaliated by imposing its own tariffs on U.S. goods.  

The current rate incorporates a 20% initial tariff imposed by the U.S. due to China's alleged involvement in fentanyl trafficking.

However, after turmoil in the financial markets, the Trump administration exempted several electronics products, including smartphones, computers, semiconductors, and solar cells, from the bulk of the tariffs.

According to the CNBC report, China's exports to the U.S. were up 9.1% in terms of total values in March from a year ago, while imports were down 9.5%.

China will "implement all countermeasures announced against the U.S. strictly in accordance with the law" while continuing to open up its economy for mutually-beneficial trade and investment cooperation with countries around the world, Lingjun Wang, the vice head of customs administration, reportedly said, according to CNBC.

Citigroup analysts reportedly said that Trump’s latest move to pause the tariffs on consumer electronics goods could reduce the negative impact on China’s economy by 0.4 percentage points if it were to last. 

Chinese equity-focused Exchange-traded funds iShares China Large-Cap ETF (FXI) and iShares MSCI China ETF (MCHI) have gained 9.6% and 7.4%, respectively, year-to-date.

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