Imports from China have taken a nosedive since last year, showing how seriously President Donald Trump's tariffs have shaken up global trade routes and affected what U.S. shoppers see on store shelves.

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Diccon Hyatt

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Published May 05, 2026

05:19 PM EDT

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Key Takeaways

Imports from China in the first quarter of 2026 were 40.7% lower than last year, reflecting the shift in supply chains away from what was at one time America's biggest trading partner.
China has fallen behind Mexico, Canada and Taiwan as manufacturers relocate to avoid punishing tariffs on China.
The tariffs have discouraged Chinese imports, but haven't boosted U.S. manufacturing or employment in that sector.

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That's according to the Census Bureau, which said Tuesday that the U.S. imported $60.87 billion worth of goods from China in 2026 through March, compared to $102.66 billion over the same period in 2025—a 40.7% drop.1 Trump targeted China with especially punishing tariffs as part of his campaign to use import taxes to lure manufacturing back to American shores, at one point targeting what was then America's largest trading partner a 164% tariff.2

What This Means For The Economy

China is still a major exporter to the U.S., but is not nearly as dominant as it was before tariffs tilted the playing field.

Tariffs on China are lower these days, especially since the Supreme Court struck down many of Trump's import taxes in February.

The drop in Chinese imports has yet to produce the industrial renaissance in the U.S. that the tariffs were intended to accomplish, and the manufacturing sector has lost jobs consistently since the tariffs were put in place. Nor have they eliminated the trade deficit, which stood at $60 billion in March, compared with $66 billion the same month in 2024.3

However, trade patterns have shifted in a big way: In the first quarter, China was the fourth-largest exporter to the U.S. behind Mexico, Canada and Taiwan. In fact, the U.S. bought more than double the amount of products from Mexico in the first quarter as it did from China.

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All that disruption has come at a price, and it's one that U.S. consumers have paid. Prices for "core" goods other than food and energy were up 1.2% over the year in March according to the Bureau of Labor Statistics, helping push overall inflation well aboce the Federal Reserve's goal of a 2% annual rate. The increase is noteworthy because in pre-pandemic times, core goods prices typically stayed flat or decreased.4

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Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

Bureau of Economic Analysis. "U.S. International Trade in Goods and Services March 2026."
Congressional Research Service. "U.S.-China Tariff Actions Since 2018: An Overview."
Bureau of Economic Analysis via Federal Reserve Economic Data. "Trade Balance: Goods and Services, Balance of Payments Basis."
Bureau of Labor Statistics via Federal Reserve Economic Data. "Commodities Less Food and Energy."

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