An order by the administration of US President Donald Trump to remove tariff exemptions on small packages and subject them to normal Customs duties would hurt Chinese economic growth in 2025, Bloomberg News reported Thursday, citing economists at Nomura.
The removal of the tariff exemptions on items worth below $800 would impact tens of billions of dollars of trade, slash Chinese export growth by 1.3 percentage points, and clip China's gross domestic product growth by 0.2 percentage points, the report said, citing the note.
In 2024, e-commerce sites such as Shein and Temu shipped $46 billion worth of small parcels to the US, the report said.
China's cross-Pacific trade reached $23 billion in 2024, Bloomberg said, citing data from the country's General Administration of Customs.
The number could be bigger as companies ship larger quantities of items to Mexico before breaking them down into smaller packages to enter the US, according to Bloomberg.
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