China’s imports tumble as demand skids, trade war heats up.

China’s imports unexpectedly shrank over the January-February period, while exports lost momentum, as escalating tariff pressures from the United States cast a shadow over the recovery in the world’s second-largest economy.

The first two months of the year saw the opening salvo of a renewed U.S.-China trade war, with U.S. President Donald Trump imposing an extra 10% levy on Chinese goods, arguing Beijing had not done enough to stem the flow of the deadly opioid fentanyl.

China’s imports fell 8.4% year-on-year, customs data showed on Friday, missing 1% growth forecast in a Reuters poll of economists and a 1% uptick in December.

Exports from the largest manufacturing nation rose just 2.3% over the same period, missing expectations for a 5% increase and slowing from December’s 10.7% gain.

Source: FINANCE.YAHOO