Impact of International Policy Changes on Export Cost
-In 2023, the average tariff imposed by the US on Chinese goods reached 19.3%, significantly higher than the global average of 7.5%.
-In 2024, the EU launched the Carbon Border Adjustment Mechanism (CBAM), levying carbon taxes on products like steel and aluminum.
-India raised import duties on plastic packaging materials to 20% starting April 2024.
–In 2025, the United States escalated trade tensions with China by implementing dramatic tariff hikes. Starting February 2025, the US imposed a 10% base tariff on all Chinese goods, and by April, tariffs on selected goods were raised to 54%, and in some cases, as high as 145%-the highest in recent history. Additionally, the US removed the de minimis exemption for imports under $800, dealing a major blow to cross-border e-commerce platforms such as Temu, Shein, and AliExpress.
These policies significantly increase export costs. For price-sensitive goods, even a 1% increase could lead customers to switch suppliers.
