Trade between U.S. and China plummets ahead of October negotiations

The big picture: Imports of American products to China dropped to $10.3 billion in August, down 22% from the same month last year. Chinese exports to the U.S. also plummeted to $44.4 billion in August, down 16%. China’s trade surplus with the U.S. shrunk to $31.3 billion in August, down $27 billion from a year prior.

Both sides of the escalating trade war hiked tariffs on billions of dollars worth of goods last month, disrupting industries ranging from agriculture to the auto sector to consumer products.

Talks between President Trump and Chinese President Xi Jinping earlier this summer ended without a deal. Negotiators are set to meet again in October, with Trump planning additional tariff increases on Oct. 1 and Dec. 15.