What next for China’s export machine after top US court blocks Trump’s tariffs?
The high-stakes meeting between Trump and Xi may determine whether current reprieve gives way to a more durable trade deal, analyst says
Chinese goods had been subject to an additional 20 per cent in levies imposed by Trump in his second term: “reciprocal” duties of 10 per cent and a further 10 per cent in “fentanyl” tariffs. That was before the US Supreme Court struck down those measures on Friday.
As a temporary replacement, Trump issued an executive order on the same day, imposing a 10 per cent levy on all goods entering the United States, effective on Tuesday. He later announced on Truth Social that the rate would be increased to 15 per cent – the maximum allowed under Section 122 of the 1974 Trade Act.
The shift provides Chinese exporters with a net reduction in the near term, capped at 150 days under the obscure trade law cited. While exporters welcomed the drop in rates, some said they were still contending with a complex, multilayered tariff regime.
China’s “small parcel” e-commerce exporters did not stand to benefit from the Supreme Court ruling, as the suspension of the duty-free de minimis exemption for low-value shipments remains in place.
Chinese exporters are already ramping up production to front-load goods to the US. One exporter of stationery products in Zhejiang said the company had called workers back to the production line before the Lunar New Year holiday had ended.