Citing Data from the U.S. Department of Commerce
The New York Times (NYT) reported on May 6 (local time) that in the first quarter of this year (January to March), the share of Chinese goods in total U.S. merchandise imports fell to its lowest level in 20 years.
Citing data released by the U.S. Department of Commerce that day, the NYT stated that U.S. imports of Chinese goods in the first quarter totaled $102.7 billion, accounting for only 11% of total U.S. merchandise imports. This share has dropped to less than half of the 22% recorded seven years ago.
The NYT noted that while the proportion of Chinese imports tends to fluctuate due to seasonal purchasing patterns, it is clear that supply chains began to be affected after President Donald Trump decided to raise tariffs on China.
Since it takes several weeks for goods to travel from Chinese factories to U.S. stores, many American consumers are only now beginning to feel the price increases caused by higher tariffs. However, the NYT added that these effects are expected to become even more pronounced as the summer progresses.
Although both the United States and China are showing a willingness to negotiate, the NYT pointed out that it remains uncertain how quickly an agreement can be reached. The U.S. and China are scheduled to hold high-level talks in Switzerland this weekend. The U.S. delegation will include Treasury Secretary Scott Besant and U.S. Trade Representative (USTR) Jamison Greer, while the Chinese delegation will be led by Vice Premier He Lifeng, China's top economic official.
Meanwhile, the NYT reported that while some U.S. companies appear to have slowed or suspended imports in consideration of tariffs, others are rushing to import more goods ahead of the implementation of new tariffs. In March, the U.S. trade deficit in goods and services surged to $140.5 billion, up sharply from $123.2 billion in February, continuing the rapid increase seen since the presidential election last November.
Omair Sharif, president of the research firm Inflation Insights, explained that the surge in consumer goods imports in March was driven almost entirely by pharmaceutical companies importing raw materials. This was in response to President Trump's announcement of forthcoming tariffs on prescription drugs and related items, prompting companies to make advance purchases. In a memo to clients, Sharif wrote, "This reflects pharmaceutical companies rushing to import ahead of drug tariffs. Imports of all other items in March?such as toys, furniture, home appliances, kitchenware, and clothing?were much lower than expected."
Matthew Martin, chief U.S. economist at Oxford Economics, said that while imports from countries granted a 90-day tariff reprieve may remain high, in the case of China, the additional tariffs implemented by President Trump in March have "begun to take effect." He added that because the average U.S. tariff rate on Chinese goods more than doubled in April, the share of Chinese goods in total U.S. merchandise imports is expected to decline sharply.
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