Context:

China experienced a decline in export growth in April due to the imposition of triple-digit tariffs by President Trump, highlighting the adverse effects of the ongoing trade war between the US and China. Although the 8.1% growth in exports surpassed economists' predictions, it marked a decrease from March's 12.4% growth, when businesses expedited shipments to avoid the new tariffs. The trade conflict has led to significant economic disruptions, with China's factory activity contracting rapidly and the US economy experiencing its first quarterly contraction in three years. As trade officials from both nations prepare for discussions in Geneva, Switzerland, the stakes are high, with tariffs of at least 145% on Chinese imports and 125% on US imports causing a steep decline in bilateral trade. Compounding the tensions, President Trump has refused to lower tariffs before negotiations, while also planning to address the case of jailed Hong Kong media tycoon Jimmy Lai during the talks.

Dive Deeper:

• China's export growth fell to 8.1% in April from 12.4% in March, as businesses rushed to ship orders before the implementation of Trump's triple-digit tariffs, which have severely impacted trade between the two largest global economies.

• The ongoing trade war has resulted in significant economic challenges, with China's factory activity contracting at its fastest pace in 16 months and the US experiencing its first economic contraction in three years during the first quarter.

• High tariffs, with the US imposing at least 145% on Chinese imports and China responding with 125% on US imports, are causing a sharp decline in trade between the two nations, adversely affecting logistics and resulting in potential price increases and shortages for consumers.

• Upcoming talks in Geneva between US and Chinese trade officials are crucial, as they aim to negotiate a de-escalation of the tariff war, although US Treasury Secretary Scott Bessent has tempered expectations of a deal, expressing hope solely for a reduction in tensions.

• President Trump has insisted on maintaining high tariffs on Chinese imports prior to negotiations, despite Beijing's previous demands to lower them, and has expressed intentions to discuss the case of Hong Kong media tycoon Jimmy Lai during the talks, adding another layer of complexity to the negotiations.