China strikes back! Imposing tariffs on some US imports

On February 1, 2025, the US government announced a 10% tariff increase on all Chinese goods exported to the US, citing issues such as fentanyl. This unilateral approach seriously violates the rules of the World Trade Organization, and not only does not help solve the US' own problems, but also undermines normal economic and trade cooperation between China and the US.

In response, China quickly took countermeasures. The State Council Tariff Commission issued an announcement on February 4, imposing additional tariffs on some imported goods originating from the United States from February 10, 2025. Specific measures include:

1. A 15% tariff will be imposed on coal and liquefied natural gas.

List of goods subject to 15% tariff

2. A 10% tariff will be imposed on crude oil, agricultural machinery, large-displacement cars and pickup trucks.

List of goods subject to 15% tariff

3. For the imported goods listed in the appendix originating from the United States, corresponding tariffs will be levied on the basis of the current applicable tariff rates. The current bonded and tax reduction and exemption policies remain unchanged, and the additional tariffs will not be reduced or exempted.

In addition, China's Ministry of Commerce has included PVH Group and Illumina in the Unreliable Entity List, and has jointly implemented export controls on tungsten, tellurium, bismuth, molybdenum, and indium-related items with the General Administration of Customs. At the same time, China has formally sued the United States in the WTO, demanding that it correct its wrong practices.

For cross-border e-commerce, the 10% tariff imposed by the United States on Chinese goods has directly led to an increase in the cost of goods exported from China to the United States. In order to maintain profit margins, cross-border e-commerce sellers may choose to increase the price of goods, but this may lead to a decrease in consumer willingness to buy, especially for price-sensitive product categories.

It is worth noting that changes in tariff policies will accelerate the reshuffle of the cross-border e-commerce industry. Sellers with weaker competitiveness may be eliminated, while sellers with brand advantages, supply chain integration capabilities and refined operation capabilities will stand out. Branding will become the key to improving the competitiveness of cross-border e-commerce companies. Through brand building, user stickiness can be enhanced and price competition pressure can be resisted.