China exports surge 5.8% in June as business rush through orders during U.S. tariff reprieve

China’s exports accelerated in June as a reprieve on U.S. tariffs prompted a rush of orders by companies and consumers ahead of an August deadline.

Exports climbed 5.8% from a year earlier, up from a 4.8% rise in May. Imports also recovered, growing 1.1% in the first increase so far this year, according to customs data released Monday.

Exports to the United States fell 16%, but that was less than half the 34.5% drop seen in May.

After U.S. President Donald Trump imposed tariffs of up to 245% on imports from China and Beijing responded with its own steep import duties, the two sides agreed to a truce to allow time for talks.

The retailers and other importers that had largely halted shipments of shoes, clothes, toys, and other items due to new tariffs then resumed imports from China.

But preliminary discussions between the two sides have yet to produce significant progress and sudden changes in policy have raised uncertainty for companies trying to plan ahead.

In the meantime, the Trump administration has hiked tariffs on imports from China by 30%, pending an Aug. 12 deadline for reverting to the higher tariffs Washington and Beijing have delayed for now.

The recovery in trade is expected to help boost economic growth in the April to June quarter. The Chinese government is due to report those figures on Tuesday.

Still, the outlook is less upbeat, noted Zichun Huang of Capital Economics, noting that “tariffs are likely to remain high and Chinese manufacturers face growing constraints on their ability to rapidly expand global market share by slashing prices.

“We therefore expect export growth to slow over the coming quarters, weighing on economic growth,” Huang said in a report.

Data for the first six months of the year showed that while the trade war with the U.S. heated up following Trump’s return to the White House, China’s global trade kept growing.

Total trade including exports and imports hit a record of more than 20 trillion yuan ($2.8 trillion) as Chinese businesses diversified their overseas production and export markets. China’s global trade surplus in the first half of the year hit $586 billion.

Exports to Southeast Asia grew 13% year-on-year in January to June, with shipments to Thailand up 22%, to Vietnam up nearly 20% and to India up more than 18%.

Trade with Europe also was brisk, climbing 6.6% in the first half of the year from a year earlier.

But auto exports fell after the European Union imposed higher tariffs on Chinese-made electric vehicles, sinking nearly 38% from a year earlier. Exports of auto parts fell more than 23%.

This story was originally featured on Fortune.com