China’s export boom is setting off fireworks, and economies worldwide hope they don’t catch fire. In June, China exported $99B more in goods than it imported. This record trade surplus was driven by foreign companies rushing to buy before new US and European Union (EU) tariffs take effect next month, impacting products like electric vehicles and household appliances.

• In June, Chinese exports surged 8.6% from the same time last year, the fastest growth in 15 months — while imports fell by 2.3% from a year earlier due to weak domestic demand.
• China’s trade surplus with the US and the EU grew to $32B and $22.6B, respectively.

The straw that broke the camel’s back: China’s economic resurgence requires a return to its roots — producing and exporting manufactured goods. However, with the EU, US, and India raising tariffs on these goods, economists predict a slowdown in China’s economic growth in the second quarter — compounding the headwinds affecting the world’s second most-populated country.