Articles in this Cluster
02-05-2025
The US eliminated a tariff loophole that allowed cheap Chinese goods to enter the country duty-free, potentially increasing prices for online shoppers and delaying package delivery. The loophole, known as de minimis, previously exempted packages worth up to $800 from tariffs. As a result, millions of packages from China, which accounted for over 1.3 billion low-value shipments in 2024, will now be subject to tariffs, potentially increasing costs for consumers. The change is part of the Trump administration's aggressive trade policies, particularly toward China.
02-05-2025
The US has closed a loophole known as the "de minimis exemption" that allowed online retailers like Shein and Temu to ship low-value items worth under $800 to the US without paying duties or import taxes. The exemption was used by Chinese online retailers to offer ultra-low prices to US customers. President Donald Trump closed the loophole, citing concerns that it was used to smuggle illegal goods, including synthetic opioids like fentanyl. As a result, packages from mainland China and Hong Kong with a value of up to $800 now face a 120% tax rate or a flat fee starting at $100. Shein and Temu have already raised prices for US customers, and other countries, including the UK and EU, are considering similar changes to their own duty-free exemptions, which could lead to price increases for consumers in those regions.
02-05-2025
A major shipping loophole known as the de minimis exemption expired, imposing tariffs on millions of Americans' purchases, potentially more than doubling the cost of cheap products from Chinese e-commerce sites like Shein, Temu, and AliExpress. The exemption allowed duty-free shipments of goods worth under $800, and its end is expected to impact lower-income households the most. Major carriers and the US government claim to be prepared, but regular American shoppers may face chaos and higher costs, with some retailers already raising prices in anticipation of the changes. The tariffs could range from 120% to 145% depending on the carrier, and some shippers may face additional fees.
02-05-2025
In 2016, the US Congress raised the threshold for tax-free imports from $200 to $800, allowing Chinese companies to flood the American market with cheap goods through e-commerce platforms like Amazon, Shein, and Temu. This policy change supercharged China's exports to the US, with four million packages entering the country daily without customs inspection or duties. However, with new tariffs taking effect, most packages from China and Hong Kong are now subject to tariffs, even if worth less than $800. As a result, American shoppers are seeing higher prices, and Chinese exporters are scrambling to find new buyers, with some factories suspending operations and millions of jobs potentially at risk. China's export-driven economy is facing a major challenge, with new export orders falling to their lowest level since the pandemic, and economists warning of potential job losses of up to 16 million in the long run.
02-05-2025
The Trump administration has eliminated a loophole allowing American shoppers to buy cheap goods from China without paying tariffs, effective May 2, 2025. The de minimis rule previously allowed products valued up to $800 to avoid tariffs if shipped directly to consumers. The loophole led to a surge in individually addressed packages, with U.S. Customs processing over a billion such packages in 2023, averaging $54 in value. The change is expected to raise prices for American consumers, hurt small companies that relied on the loophole, and affect airlines and private carriers. The decision was partly driven by concerns over the loophole's use as a conduit for fentanyl and its impact on U.S. jobs in warehousing and logistics. The move is seen as a blow to Chinese exports and online retailers who rely on cheap prices, and may lead to increased prices for consumers.
02-05-2025
Chinese firms in Vietnam have halted new investments and may face closure if US President Donald Trump's tariffs on Vietnamese imports are reinstated after a 90-day pause. Many factories have cancelled orders and scrapped expansion plans, with smaller low-margin sellers like textile makers expected to be particularly affected by the proposed 46% levy on imports from Vietnam.
02-05-2025
China is considering trade talks with the US, but has set a condition that the US must first cancel its tariffs on Chinese goods. China's Commerce Ministry stated that the US has "no sincerity" in negotiations if it doesn't correct its "wrong unilateral tariff measures." The trade war between the two countries has been escalating since President Trump increased tariffs on Chinese goods, with China responding with its own tariffs on US goods. China's economy has been negatively impacted, with a significant slowdown in manufacturing activity, and the country is under pressure to respond to the US trade aggression while maintaining its nationalistic image.
02-05-2025
China is evaluating the possibility of starting trade negotiations with the U.S. after senior U.S. officials reached out "through relevant parties multiple times" to initiate talks on tariffs. China's commerce ministry stated that the U.S. should remove all unilateral tariffs to show sincerity, and failure to do so would indicate a "lack of sincerity" and "further compromise mutual trust." The trade war between the two countries has resulted in tariffs of 145% on Chinese goods and 125% on U.S. goods, with both sides granting exemptions on certain critical products. Analysts caution that reaching a comprehensive deal will be complex and time-consuming due to the unpredictability of U.S. President Donald Trump and the strategic priorities and economic red lines of both countries.
02-05-2025
China is evaluating proposals from the US to begin trade talks amid a tariff war, marking a subtle tone shift from Beijing. A Commerce Ministry spokesperson said China is assessing US messages to start talks, but any negotiations would require the US to demonstrate "genuine sincerity" by correcting its "wrongdoings" and canceling unilateral tariff hikes. The US has imposed tariffs of up to 145% on Chinese goods, while China has raised tariffs on American imports to 125%, significantly impacting trade between the two economies.
02-05-2025
China is evaluating US proposals to scale down the trade war, with the Ministry of Commerce stating that the US has expressed willingness to negotiate on tariff issues and has relayed messages to China through relevant channels, but China demands that the US demonstrate sincerity by removing its unilateral tariffs and taking concrete actions.
02-05-2025
Asia-Pacific markets were mixed on Friday following China's announcement that it is considering trade talks with the U.S., boosting investor sentiment. Hong Kong's Hang Seng Index rose 1.74%, while the Hang Seng Tech index surged 3.45%. India's Nifty 50 gained 0.46%, Japan's Nikkei 225 added 0.87%, and Australia's S&P/ASX 200 climbed 0.94%. Asian currencies strengthened, with the offshore Chinese yuan appreciating 0.25% against the dollar. Copper prices rose 0.89% on the London Metal Exchange, and Bitcoin approached $100,000.
02-05-2025
European stocks are expected to open mixed on Friday, with Germany's DAX and France's CAC 40 seen lower and UK stocks higher. The news comes after China signaled it may be open to trade talks with the US, boosting Asia-Pacific markets and copper prices. European earnings reports, including Standard Chartered's beat on first-quarter profit expectations, are also in focus. Additionally, preliminary euro zone inflation data for April is due to be released.
02-05-2025
S&P 500 futures rose 0.68% Thursday evening as investors reacted to China's announcement that it is evaluating the possibility of starting trade negotiations with the U.S. Apple slid 4% after posting fiscal second-quarter revenue from its Services division that fell short of Wall Street's estimates, while Amazon dropped 2% after issuing light guidance. The major averages rose to kick off May, with the Nasdaq Composite jumping 1.5% and wiping out its losses since April 2. Investors are awaiting Friday's April jobs report, with economists anticipating payrolls grew by 133,000 last month. All three major averages are on pace for their second winning week in a row.
