Nomura economists warn Trump's tariff decision could significantly reduce trade with China
businesses: Temu · Shein · SF International · Nomura Holdings
- Nomura Holdings economists believe President Trump's decision to close a tariff loophole used by Chinese companies may lead to a significant reduction in trade worth tens of billions of dollars.
- This decision is expected to lower China's economic growth by 0.2 percentage points this year, as it will decrease Chinese export growth by 1.3 percentage points.
- The value of shipments that were previously exempt from tariffs, delivered to the US from popular Chinese online services like Shein and Temu, was $46 billion last year.
- Trump's new tariffs include a 10% or higher duty on such deliveries from China.
- The closure of the tariff loophole has already resulted in price increases for some companies, with SF International announcing new fees for shipments from China or Hong Kong.
- The European Commission has announced similar measures, aiming to change regulations allowing duty-free deliveries for packages valued under €150.
Find out the mood, impact, relevance and relevant interest groups
Analyses of the article
SENTIMENT
The article highlights challenges and negative consequences resulting from the tariff loophole closure, including reduced trade and economic growth for China.
IMPACT
Short
The impacts of the tariff changes are expected to be felt within the current year, particularly affecting trade volumes and economic growth immediately.
RELEVANCE
High
The article discusses significant economic policy changes that affect international trade, making it relevant to a broad audience, especially businesses involved in trade.
STAKEHOLDER
businesses
The focus is on businesses that will be directly impacted by the new tariffs and regulations, particularly those involved in shipping and e-commerce.