China's US imports plummeted due to new tariffs

China's imports of US goods, including cotton, cars, and energy products, dropped sharply in January and February. This is a result of tariffs imposed by the US and retaliation from China. According to a Bloomberg analysis, cotton imports fell by almost 80% compared to last year. Large-engine car imports decreased by nearly 70%. Imports of crude oil and liquefied natural gas also fell by more than 40%. These items faced new tariffs from China during the first two months of 2025. This trade conflict is creating uncertainty and higher costs for businesses in the region. Companies in China are already responding by reducing the export of small packages. In the US, major retailers such as Walmart are seeking price cuts to offset the impact of the tariffs. However, not all US goods are experiencing declines. Chinese imports of soybeans increased by nearly 50%, reaching $4.2 billion before the new tariffs took effect. Purchases of processors and chips nearly doubled, contributing to a 2.7% rise in overall imports from the US, which reached almost $27 billion in the first two months. Meanwhile, imports of machinery used for making semiconductors decreased by a third. The US has been tightening export controls on high-tech machinery for several years, though Chinese companies still buy less advanced equipment.