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Wednesday, February 5, 2025

Trump’s Ban of Trade Loophole Will Cut China Growth, Nomura Says

 


  • Chinese reported $23 billion in package exports to US in 2024
  • Nomura estimates the total might have been double that

The decision by President Donald Trump to ban Chinese companies from using a US tariff loophole will hit tens of billions of dollars of trade and reduce China’s economic growth this year, according to new estimates by economists at Nomura Holdings Inc.

Last year, companies such as Shein and Temu shipped $46 billion worth of small parcels to the US to take advantage of the rule that allows items with a declared value under $800 to enter the US tariff-free, according to Nomura’s estimates.

https://www.bloomberg.com/news/articles/2025-02-06/us-banning-trade-loophole-will-cut-china-s-growth-nomura-says

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