China’s exports losing steam amid Trump’s trade war

China’s powerful export machine is “quickly losing steam” amid the trade war with the US, according to Beijing’s official purchasing manager index.

China and the US are currently involved in a trade war slapping billions of dollars of tariffs on each other goods following President Donald Trump’s demand that Beijing bring down the trade deficit to USD 375 billion.

Beijing and Washington started the trade war last month each imposing 25 per cent tariffs on USD 34 billion of each other’s exports.

Later they slapped another USD 16 billion on each other’s goods on August 23. Trump was reportedly keen to move ahead with a plan to impose tariffs on USD 200 billion of Chinese imports next week on which Beijing said it would retaliate.

The trade war seems to have begun impacting China — often referred to as the world’s factory — as it is the biggest global exporter.

“China is quickly losing steam amid threats of a full-blown trade war,” the Hong Kong-based South China Morning Post reported.