What's happened
U.S. exports increased by 3% in November, reducing the trade deficit to $52.8 billion. Meanwhile, China’s exports rose 5.9% year-on-year, with a record trade surplus of over $1 trillion, despite ongoing US tariffs and trade tensions. The global trade landscape remains complex and evolving.
What's behind the headline?
The recent data underscores the resilience of China's export sector despite US tariffs, driven by trade rerouting and price competitiveness. The US trade deficit's contraction reflects both tariff impacts and shifting supply chains. However, the widening Chinese surplus raises concerns among Western partners, with France warning of potential tariffs if imbalances persist. The temporary US-China trade truce signals a cautious easing, but underlying tensions and protectionist policies suggest ongoing volatility. The global trade environment is increasingly fragmented, with China expanding its influence outside the US, which could reshape supply chains and geopolitical alignments in the coming years. The US's reliance on tariffs as a tool to curb deficits will likely face legal and political challenges, especially as the Supreme Court reviews tariff legality. Overall, these trends indicate a prolonged period of trade realignment, with China gaining market share and the US adjusting to a more complex, multi-polar trade landscape.
What the papers say
The New York Times reports that US exports rose 3% in November, with a trade deficit shrinking to $52.8 billion, amid tariffs and trade negotiations. The Independent highlights China's rising exports, especially to regions outside the US, with a record trade surplus exceeding $1 trillion. Al Jazeera notes China's continued export growth despite US tariffs, driven by diversification and trade rerouting, with exports to Southeast Asia and Europe increasing significantly. These contrasting perspectives illustrate how China's trade resilience is reshaping global markets, even as US tariffs impact bilateral trade, and highlight the geopolitical tensions influencing trade policies.
How we got here
The US imposed tariffs on Chinese goods earlier in 2025, aiming to reduce its trade deficit. China responded by diversifying its export markets, notably increasing shipments to Southeast Asia, Africa, and Europe. A trade truce was reached in October, easing tensions temporarily, but tariffs remain high, and trade dynamics continue to shift.
Go deeper
Common question
-
Why Are China's Exports Growing While US Shipments Are Falling?
Recent trade data shows China's exports are bouncing back, even as US shipments decline sharply. This shift raises questions about what's driving these changes and what they mean for global trade. Are China's exports benefiting from new markets? Why are US shipments dropping? And how could this impact the economy worldwide? Below, we explore these questions and more to help you understand the current trade landscape.
-
What’s the bigger picture behind today’s US-China trade and tech tensions?
Recent developments in US-China trade relations have sparked widespread interest and concern. From declining exports to the US to China's growing trade surplus, many are wondering what these changes mean for the global economy and political landscape. In this page, we explore the key questions about the current trade tensions, their implications, and what might come next for international relations and markets.
-
Why Is the US Trade Deficit Shrinking While China's Surplus Hits Record Highs?
The global trade landscape is shifting rapidly, with the US reducing its trade deficit even as China reports a record trade surplus exceeding $1 trillion. This paradox raises questions about the underlying economic dynamics, trade policies, and how these changes impact the world economy. Below, we explore the key factors behind these trends and answer common questions about their implications.
More on these topics
-
Donald John Trump is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021.
-
China, officially the People's Republic of China, is a country in East Asia. It is the world's most populous country, with a population of around 1.4 billion in 2019.
-
The United States of America, commonly known as the United States or America, is a country mostly located in central North America, between Canada and Mexico.
-
Xi Jinping is a Chinese politician serving as the general secretary of the Communist Party of China, president of the People's Republic of China, and chairman of the Central Military Commission.
-
The International Monetary Fund (IMF) is an international financial institution and a specialized agency of the United Nations, headquartered in Washington, D.C. It consists of 191 member countries, and its stated mission is "working to foster global...