Duty-free exemption on small packages worth $800 or less fuelled China’s dominance in the industry – but the model is now under threat
The White House announced the order on Wednesday as part of efforts to close loopholes used to evade tariffs and smuggle “deadly synthetic opioids as well as other unsafe or below-market products” into the United States. It will come into effect on August 29.
Experts said the latest action marked a return to trade normalcy and left Chinese exporters with limited options: either compete in an already saturated domestic market, or battle fellow Chinese sellers abroad.
“Before, they could source from other countries to get around rules — that’s no longer viable, as the pathways to the US market are all blocked,” said Zhuang Bo, global macro strategist at Loomis Sayles Investment Asia, an affiliate of Natixis Investment Managers.
Your personal data will be processed and information from your device (cookies, unique identifiers, and other device data) may be stored by, accessed by and shared with 88 TCF vendor(s) and 20 ad partner(s), or used specifically by this site or app.
