TLDR
- China reported a record $1.08 trillion trade surplus for the first eleven months of 2025, exceeding all of 2024
- November exports from China rose 5.9% to $330.3 billion while US-bound shipments declined 29% year-over-year
- Supreme Court will soon rule if Trump legally used emergency powers to impose widespread tariffs on imports
- US Trade Representative says Trump is considering withdrawing from the USMCA trade agreement with Canada and Mexico
- American companies including Costco have filed legal claims for potential tariff refunds if courts rule against Trump
China’s trade surplus hit an unprecedented $1.08 trillion through November 2025, marking the first time the country has crossed this threshold. The customs data released Monday shows exports grew 5.9% in November compared to the same month last year.
Chinese exports totaled $330.3 billion in November while imports reached $218.6 billion. The growing divide between what China sells and buys from other nations reflects its manufacturing strength.
The record surplus surpasses China’s full-year 2024 total of $992 billion. This happened despite ongoing trade tensions with the United States and other trading partners.
The US Supreme Court is preparing to issue a ruling on President Trump’s tariff policies. The case examines whether Trump legally used the International Emergency Economic Powers Act to impose tariffs.
Constitutional experts question if the president has authority to levy taxes without Congress. The legislative branch traditionally controls taxation and government spending under the US Constitution.
Trade War Pushes China to Seek New Export Markets
Chinese exports to America fell 29% in November compared to last year. This continues a pattern of eight straight months showing double-digit drops in bilateral trade.
China is responding by diversifying its customer base globally. Shipments to Southeast Asia, Africa, Latin America and European markets have increased as US trade weakens.
The US and China agreed to a trade truce in late October. President Trump and Chinese President Xi Jinping negotiated the deal during a meeting in South Korea.
The agreement included US tariff reductions on some Chinese products. China committed to ending export restrictions on rare earth elements used in technology manufacturing.
Treasury Secretary Scott Bessent said China is following through on its commitments. Speaking at a New York Times event Wednesday, Bessent stated China is keeping “every part of the deal.”
Investment bank Morgan Stanley forecasts China will control 16.5% of global exports by 2030. Analysts credit Chinese dominance in electric vehicles, robotics, batteries and other advanced manufacturing sectors.
USMCA Exit and Legal Challenges Threaten Trade Framework
Trump is evaluating whether to leave the USMCA according to US Trade Representative Jamieson Greer. The trade pact with Mexico and Canada allows tariff-free commerce for goods meeting specific origin standards.
Exiting USMCA would fundamentally change trade with America’s neighbors. The agreement replaced the North American Free Trade Agreement during Trump’s previous administration.
Multiple US businesses have filed lawsuits challenging Trump’s tariff authority. Costco is among companies seeking refunds on tariffs already paid.
A Supreme Court decision against Trump could force the government to return billions in tariff collections. The New York Times highlighted this financial risk in a recent report on the pending cases.
Trump directed government agencies to investigate food pricing practices. The Justice Department and Federal Commission will review whether foreign companies are manipulating prices in the meat industry.
Chinese manufacturing activity shrank for eight consecutive months through November. Official surveys show factory weakness, though economists expect China to still achieve its 5% growth target for 2025.
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