Beijing, Sep 8 (AP) China's exports grew last month but at a slower pace than in recent months, the country's customs agency said Monday.

Exports reached $321.8 billion in August, a 4.4% increase compared to the same month last year. That was down from a 7.2% jump in July. Meanwhile, imports totalled $219.5 billion, a 1.8% rise.

China's large trade surplus has become a contentious issue with major trading partners including the US and the European Union. Low-priced Chinese imports are a boon for consumers but can lead to job cuts in manufacturing.

In the first eight months of the year, China's exported $785.3 billion more in goods and services than it imported from other countries, the monthly customs data showed.

President Donald Trump has imposed 30% in additional tariffs on imports from China since taking office early this year. He backed down from even higher tariffs after China retaliated with import taxes of its own. The two countries are in talks to try to reach a trade agreement.

The tariffs from both sides and the possibility they could be raised again are having an impact on two-way trade. Chinese exports to the US plunged 33% in August to $47.3 billion, while its imports from the US dropped 16% to $13.4 billion.

Exports to the EU rose 10.4% to $46.8 billion, while imports from the 27-member bloc edged down slightly to $22.8 billion.

Overall, China's exports grew at the slowest pace since the January-February period, when they rose just2.3%. The first two months of the year are reported together to smooth out distortions from the long Lunar New Year break.

China's exports of rare earths rose on a monthly basis to $55 million in August, up from $41 million in July, but down 25.6% compared to the same month last year.

Rare earth magnets, which can withstand high heat, are vital to many products including washing machines, cars and military equipment.

China dominates the global market for processing rare earths, and a clampdown on their export in April temporarily halted production at some factories in Europe and raised fears of factory shutdowns in the US. (AP) SCY SCY

Tariffs pressure trade flows as reciprocal import levies slow exports and alter rare-earth supply chains. Chinese export growth slowed in August amid imposed and retaliatory duties that reduced shipments to the principal imposing partner, widening the year-to-date merchandise surplus. Tariff measures and the risk of escalation are identified as immediate drivers of altered trade flows. Concurrent export restrictions on strategic inputs, notably rare earths, pose supply-chain risks for downstream manufacturing and affect global industrial competitiveness.