December 21, 2024 – Global Trade Landscape Shifts as Countries Implement New Tax Policies and Tariff Adjustments on Chinese Products and Foreign E-commerce Platforms
In recent weeks, several countries have announced new tax policies or tariff adjustments on Chinese products and foreign e-commerce platforms, sparking widespread concern across the globe.
The United States, through its Office of the United States Trade Representative, has declared an increase in import tariffs on solar silicon wafers, polysilicon, and certain tungsten products originating from China, effective January 1, 2025. Notably, tariffs on solar silicon wafers and polysilicon will soar to 50%, while some tungsten products will face a 25% tariff hike. The US government justifies these measures as necessary to safeguard domestic industries, given the widespread application of these products in key sectors. It’s worth noting that this is not the first time the US has imposed additional tariffs on Chinese solar products; previously, tariffs on solar cells were doubled from 25% to 50%.
Saudi Arabia has also introduced a new tax policy targeting Chinese goods. According to Color Masterbatch Industry News, effective December 3, 2024, Saudi Arabia will impose anti-dumping duties ranging from 18.12% to 34% on sulfonated naphthalene formaldehyde (SNF) originating from or exported from China. This decision aims to protect Saudi domestic industries from unfair trade practices. SNF, used as a concrete admixture, has seen growing demand in the Middle East, making Saudi Arabia’s move a significant focus for industry observers.
Mexico, on the other hand, has implemented a new tax policy targeting foreign e-commerce platforms. From January 1, 2025, all foreign companies selling goods through e-commerce platforms, including SHEIN, Temu, and Amazon, will be subject to a 16% value-added tax (VAT). This measure is intended to boost Mexican government revenue and strengthen tax regulation of foreign e-commerce platforms.
Furthermore, countries such as Vietnam, the European Union, Thailand, and Indonesia have also rolled out new tax policies or adjustments targeting Chinese products or foreign e-commerce platforms. Vietnam’s parliament has passed tax law amendments, eliminating tax exemptions for low-cost imported goods and implementing a new VAT effective July 1, 2025. The EU is considering measures to address the surge in parcels from e-commerce platforms, potentially introducing new taxes and administrative fees. Thailand’s Ministry of Finance has announced 100% inspections on Chinese imports to create a fair market environment. Meanwhile, the Indonesian government, in collaboration with multiple ministries and agencies, is conducting a crackdown on illegal imports and plans to impose high safeguard tariffs on imported ceramic products.
These new tax policies and tariff adjustments are poised to have far-reaching effects on the global trade landscape. For Chinese businesses, it is crucial to closely monitor policy developments and adjust export strategies accordingly to navigate potential market changes.