China Trade Surplus Exceeds $1 Trillion as US Shipments Drop 29% in November

TLDR

• China’s trade surplus exceeded $1 trillion for the first time in 2025, with exports rising 5.9% in November to $330.3 billion
• US shipments to China dropped 29% year-over-year in November, marking eight straight months of double-digit declines
• The US Supreme Court will soon decide if Trump’s tariffs using the International Emergency Economic Powers Act are legal
• Trump is considering exiting the United States-Mexico-Canada Agreement (USMCA), according to US Trade Representative Jamieson Greer
• Several US companies including Costco have filed lawsuits seeking tariff refunds if the Supreme Court rules against Trump’s tariff authority

The US Supreme Court is preparing to rule on the legality of President Trump’s tariff policies in the coming weeks. The case centers on Trump’s use of the International Emergency Economic Powers Act to impose blanket tariffs on imports.

Congress traditionally has oversight of taxation and spending under the US Constitution. The Supreme Court must decide if the president can bypass this authority.

Trump has publicly defended his tariff strategy while waiting for the court’s decision. He claims foreign buyers who stockpiled inventory will soon need to purchase more goods, giving his policies their “full benefit.”

China released trade data on Monday showing its surplus exceeded $1 trillion for 2025. This marks the first time China has reached this milestone in a single year.

Chinese exports grew 5.9% in November compared to the previous year. The country exported $330.3 billion worth of goods during the month.

China Shifts Trade Focus Away From US

Imports to China increased just 1.9% in November to $218.6 billion. The gap between exports and imports shows China selling far more than it buys from other countries.

US shipments to China fell 29% year-over-year in November. This represents the eighth consecutive month of double-digit declines in US-China trade.

China is redirecting its exports to new markets across Southeast Asia, Africa, Latin America and Europe. Morgan Stanley predicts China’s share of global exports will reach 16.5% by 2030.

The prediction comes despite ongoing trade tensions and protectionist policies. Analysts cite China’s strength in advanced manufacturing, electric vehicles, robotics and batteries as growth drivers.

A trade truce between the US and China was reached in late October during a meeting between Trump and Chinese leader Xi Jinping in South Korea. The US lowered tariffs on China while China agreed to halt export controls on rare earth materials.

US Treasury Secretary Scott Bessent said China is keeping “every part” of the trade deal made last month. He made the comments at a New York Times summit on Wednesday.

Trump may exit the USMCA trade agreement with Mexico and Canada next year. US Trade Representative Jamieson Greer told Politico the president is considering this option.

Under the current USMCA, Canada and Mexico pay little to no tariffs on products meeting the agreement’s origin requirements. An exit would change trade relationships with America’s neighbors.

Several US companies have filed legal claims seeking tariff refunds. Costco is among the businesses betting the Supreme Court will strike down Trump’s tariff authority.

If the court rules against Trump, the government may need to repay billions in collected tariff revenue. The New York Times reported this potential outcome based on the pending lawsuits.

Trump asked the Department of Justice and Federal Commission to investigate the US food supply chain. He wants them to examine possible price fixing by foreign companies that may be driving up meat prices.

The post China Trade Surplus Exceeds $1 Trillion as US Shipments Drop 29% in November appeared first on CoinCentral.