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    UK marketplace sellers face ‘second Brexit’ hit from Trump’s US import rules

    Many UK-based independent sellers on marketplaces such as eBay and Amazon could suffer a significant hit to US sales from planned changes to import rules under Donald Trump, with experts comparing the impact to a second Brexit.The new rules, which mean all parcels originating or made in China and being sold into the US must pay import duty – of as much as 15% on fashion items – and an additional 10% tariff, are also expected to impact bigger online clothing retailers such as Asos and Boohoo.The changes were introduced at the start of February in an attempt to protect US retailers from a surge in competition from the likes of Chinese online marketplaces Shein and Temu, but were indefinitely paused after the US customs service struggled to cope with the massive increase in parcels requiring checks last week.However, they are expected to be implemented within the coming months, potentially driving up prices for US consumers and hitting sales for online retailers.Before the change, parcels with a value of less than $800 (£635) shipped to individuals in the US were exempt from import tax and did not pass through the usual customs checks. That scheme, originally designed to help smooth online shopping, is being revoked after it emerged that the number of shipments under the “de minimis” rules had ballooned to more than 1bn, valued at $54.5bn by 2023 – most of them from China or Hong Kong via firms including Shein and Temu.“You are looking at an increase of $30 to $50 per consignment [group of parcels],” said Brad Ashton at the advisory firm RSM. “It is creating a perfect storm for online retailers putting goods into the US market. It has a lot of the hallmarks of Brexit in terms of its potential impact on small traders.“Businesses will see their margins eroded because costs will increase. We may get to a point where the changes make a UK business uncompetitive in selling to the US.”The widespread use of Chinese factories for many British brands, particularly in fashion, means businesses such as Asos and Boohoo will be drawn in, as well as many UK independent marketplace sellers.It will not just affect goods made in China and then sent from the UK, but potentially a much wider array, as any package containing even one product made in China may have to pay import tax and pass through customs checks, further increasing costs, according to experts.There is also an expectation that the de minimis rules will eventually be scrapped for all imports, no matter their origin.About $5bn worth of parcels were exported to the US from the UK under de minimis rules in 2021, according to a Congressional Research Service analysis of data from US Customs and Border Protection. About 80% of that was estimated to be related to online retail, with fashion likely to be a large proportion of it.Chris White, at the logistics company Fulfilmentcrowd, said that during the brief period when the rules were in place in early February, one-third of the parcels it shipped to the US from the UK were found to be of Chinese origin and subject to the new taxes.Fast-fashion specialists Asos and Boohoo sell about £300m of clothing a year to the US. Both are already struggling to compete with the rise of Shein and high street retailers, which have revived after the Covid pandemic. John Stevenson, a retail analyst at Peel Hunt, said Asos and Boohoo would have to “adjust prices or take a view on [the] profitability of operating in the US”.As well as the higher tax charges, customs checks required after the rule change will add as much as two days to the processing of orders, making UK retailers less competitive with US-based operators on the speed of delivery.skip past newsletter promotionafter newsletter promotionStevenson said the hit to Asos and Boohoo was “not business-critical” in the way it could be for Shein or Temu, which he believed were heavily reliant on the tax benefit, but that it would have an impact.In the short term, online sellers will probably have lower sales because of uncertainty among US shoppers over possible taxes. White said that during the period when the new rules were in place, similar parcels were loaded with different levels of duty as local customs officers made different decisions.He said a further element of the rule change might be to expose brands that were “trading on an image of being British or European” as being “made in China and not Savile Row”, potentially damaging their appeal.There would be “lots of crossed fingers and puzzled faces” over the changes in legislation, with retailers potentially opening more US warehousing or, longer term, to switch sources of supply, White added.Boohoo closed its US warehouse earlier this year, and Asos is scheduled to close its facility there in November. However, a reversal could be on the cards if the de minimis rules are confirmed. Many fast-fashion companies have already diversified their supply chains – making more in India, Bangladesh or Turkey. Trump’s tax changes could accelerate this further.Shein is reportedly incentivising Chinese suppliers to set up in Vietnam, according to a report by Bloomberg.It is not clear when the new rules might be implemented as the US tries to put the technology and workforce in place to handle the new system. Experts say it could take weeks or months.While there is a chance that Trump will change his mind, as he has done on tariffs with Canada and Mexico, no business can bet on which way the US might jump. More

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    Trump tariffs: what are reciprocal tariffs and how will they affect US consumers?

    Donald Trump has once again threatened to impose a wave of tariffs on US imports, stepping up his bid to overhaul the global economic order.On Thursday, the US president said he plans to introduce “reciprocal” tariffs, ensuring the US imposes the same taxes on its imports from the rest of the world that American goods face in other countries.“It’s fair to all,” said Trump. “No other country can complain.”The latest announcement follows a string of others from the Trump administration, promising tariffs on both America’s close allies and economic rivals. But most have yet to be enforced.Here’s what we know about Trump’s tariffs so far:What are the tariffs has Trump announced?No new tariffs were announced on Thursday. Instead, the president ordered his officials to investigate which countries the US should target with import duties.The White House has previously said it would place a 25% tariff on goods from Canada and Mexico, introduce a 10% levy on Canadian energy exports, and amend duties on steel and aluminum from all over the world.So far, the only new duty that has come into force under Trump is a a new 10% tariff on goods from China..What is a tariff and why does Trump want to use it against certain countries?A tariff is a tax levied on foreign goods imported into a country. The US is currently the largest goods importer in the world – in 2022, the value of imported goods in the US totalled $3.2tn.Before entering office, Trump threatened tariffs on the US’s three biggest trading partners: China, Mexico and Canada. Specifically, he said he wanted to see a 25% tariff on Mexico and Canada and a 10% tariff on China, until the countries deal with immigrants and illegal drugs coming into the US.Trump sees tariffs as a powerful bargaining chip – but it comes with a high price.Trump frames tariffs as a policy that can apply pressure on US manufacturers and importers to produce goods domestically.“All you have to do is build your plant in the United States, and you don’t have any tariffs,” Trump has said. But the global economy has been intertwined for decades. US farmers, for example, would not be able to produce the number of avocados Mexico produces for many years.What this means is that importers will probably push the cost of tariffs on to consumers, causing prices to rise.What is a reciprocal tariff?On the campaign trail and in the White House, Trump has repeatedly raised the prospect of a wave of “reciprocal” duties: taxing imports from certain countries at the same rate those countries impose on goods from the US.The president and his allies have pitched this as a great rebalancing of the global economy, which they claim has been tilted against the US for too long.How will US consumers be affected by the tariffs?Tariffs on imports often make prices go up.Canada, for example, is a major exporter of crude oil, while Mexico exports many fresh fruits and vegetables. Mexico is also the largest auto parts exporter to the US. China is a major exporter of chips used in electronics like phones and laptops.It’s not just the imports that consumers buy directly. When tariffs push up the price of imports, that includes imported materials used to make other products domestically in the US. Higher prices for materials will eventually make their way to consumers.Americans have been bracing for the impact tariffs will have on prices. In a November Harris/Guardian poll, nearly two-thirds of Americans said they expected prices to go up if Trump implements broad tariffs.Which federal laws give Trump the power to enact tariffs?US federal law gives the president broad powers to enact tariffs without congressional approval.Trump has the power to declare a national economic emergency to enact his tariffs. This would invoke the International Emergency Economic Powers Act (IEEPA), which gives the president the power to manage imports during a national emergency.Trump can also apply tariffs under section 232 of the Trade Expansion Act, which gives the president power to impose tariffs on certain industries. This is what Trump used in 2018, when he hit Canada, Mexico and the European Union with tariffs on aluminum and steel.Have a question about Trump tariffs? Wondering how they affect inflation, prices or the economy? We’re here to help. Email callum.jones@theguardian.com and we may answer your question in a future story More

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    Trump proposes nuclear deal with Russia and China to halve defense budgets

    Donald Trump said that he wants to restart nuclear arms control talks with Russia and China and that eventually he hopes all three countries could agree to cut their massive defense budgets in half.Speaking to reporters in the Oval Office on Thursday, Trump lamented the hundreds of billions of dollars being invested in rebuilding the nation’s nuclear deterrent and said he hopes to gain commitments from the US adversaries to cut their own spending.“There’s no reason for us to be building brand-new nuclear weapons. We already have so many,” Trump said. “You could destroy the world 50 times over, 100 times over. And here we are building new nuclear weapons, and they’re building nuclear weapons.”“We’re all spending a lot of money that we could be spending on other things that are actually, hopefully, much more productive,” Trump said.While the US and Russia have held massive stockpiles of weapons since the cold war, Trump predicted that China would catch up in their capability to exact nuclear devastation “within five or six years”.He said that if the weapons were ever called to use, “that’s going to be probably oblivion”.Trump said he would look to engage in nuclear talks with the two countries once “we straighten it all out” in the Middle East and Ukraine.“One of the first meetings I want to have is with President Xi of China, President Putin of Russia. And I want to say: ‘Let’s cut our military budget in half.’ And we can do that. And I think we’ll be able to.”Trump in his first term tried and failed to bring China into nuclear arms reduction talks when the US and Russia were negotiating an extension of a pact known as New Start. Russia suspended its participation in the treaty during the Biden administration, as the US and Russia continued on massive programs to extend the lifespans of or replace their cold war-era nuclear arsenals.skip past newsletter promotionafter newsletter promotionOutlining his vision for a shake-up in the world order, Trump also said he would “love” to have Russia back in the G7, from which it was suspended in 2014 after Moscow annexed Ukraine’s Crimea peninsula.“I think it was a mistake to throw him out,” Trump said, referring to the Russian president, Vladimir Putin.In his first term, Trump also called for Russia to be readmitted, but he found little support among other western countries.Trump revealed Wednesday he expected to meet Putin separately for Ukraine peace talks, in a sudden thaw in relations.In their first confirmed contact since Trump’s return to the White House, the US president said he had held a “highly productive” conversation with his Russian counterpart, who ordered the bloody 2022 invasion of Ukraine. More

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    Her Brother Disappeared in War 80 Years Ago. She Finally Got to Say Goodbye.

    Margery Hop Wong last saw her older brother Sgt. Yuen Hop in 1943. He was a soldier missing in action, until researchers solved the mystery behind his death.When Margery Hop Wong bade her older brother goodbye in 1943, she was just a 12-year-old girl who loved it when he took her for joy rides in his used convertible around the apple orchards their family worked.Yuen Hop left their home in Sebastopol, Calif., a small town 55 miles north of San Francisco, at 19 to join the U.S. Army. His little sister never saw him again. She knew he had died in the war, but she did not know how. Or where. Or what had happened to his body.On Friday, Ms. Wong, now 94, sat in the front pew of a mortuary just south of her home in San Francisco, her brother’s remains in a casket draped in an American flag. Younger generations of the Hop family and military veterans filled the rows behind her as a singer led the group in “Amazing Grace.”For 80 years, Sergeant Hop was lost. Now, he was found.Yuen Hopvia the Hop familyMs. Wong was the youngest of seven children born to Gin and Chan Hop, immigrants from China who spoke Cantonese and struggled to communicate with their American-born children, who grew up speaking English.Life was difficult because of anti-Chinese sentiment fueled by the Chinese Exclusion Act, passed by Congress in 1882 to dramatically restrict Chinese immigration. Chinese immigrants were regularly prohibited from living or working where they wanted, Ms. Wong recalled in an interview. She said her brother was proud to have scraped together money working as a mechanic and drying apples to buy a used convertible and tried to make life fun for his brothers and sisters.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Trump delays key piece of China tariff plan amid threats to other countries

    Donald Trump halted a key part of his tariff attack on China on Friday, as he threatened to impose new US duties on goods from many more countries next week.Plans to ensure shipments from China to the US worth less than $800 still face tariffs – removing the longstanding duty-free status of low-cast packages – have been delayed to give more time to federal agencies to prepare for the change.At the White House on Friday, however, the president said he would announce new reciprocal tariffs on more countries next week. He did not give any details specifying what the tariffs will be and which countries would be affected.“I’ll be announcing that next week reciprocal trade, so that we’re treated evenly with other countries. We don’t want any more, any less,” Trump told reporters during a bilateral meeting with Japanese prime minister Shigeru Ishiba.On Tuesday, the US Postal Service briefly halted all incoming packages from China and Hong Kong after Trump ended a de minimis provision that allowed low-value packages from China to enter the US duty-free.The provision allowed Chinese e-commerce companies such as Shein and Temu to ship items into the US without having to pay tariffs Trump had enacted on China in 2018. After a 12-hour period, the US Postal Service resumed taking all packages on Wednesday.An executive order, signed by Trump, said he would keep the provision until “adequate systems are in place to fully and expediently process and collect tariff revenue”.The president had removed the duty-free provision as his overall tariff strategy against China, what he says is in response to illegal drugs that are coming in from the country. Trump placed a 10% tariff on all Chinese imports, which went into effect this week.skip past newsletter promotionafter newsletter promotionAny new tariffs will add to the confusion and chaos over global trade Trump has created since he entered office. Trump had originally planned to place 25% tariffs against Mexico and Canada on 1 February but ultimately halted both tariffs after negotiations with the country leaders. Those tariffs are now expected to go into effect 1 March.Reuters contributed reporting More

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    What will Trump 2.0 mean for the global world order? | Stephen Wertheim

    Many assumed that Donald Trump’s second term as president of the United States would turn out like his first. But this time looks to be different. In his opening weeks, the US president has taken a flurry of actions he never attempted before, wielding sweeping tariffs against the US’s neighbors, upending portions of the federal workforce, and attempting to change constitutionally enshrined citizenship laws through executive order.The early signs on foreign policy are no exception. In his inaugural address, Trump said next to nothing about the issues that have dominated US foreign policy for decades – matters of war and peace in Asia, Europe and the Middle East. Instead, he spoke of expanding US territory in the western hemisphere (and going to Mars), harking back explicitly to the 19th-century tradition of manifest destiny. Astoundingly, Trump mentioned China solely for the purpose of accusing it, inaccurately, of operating the Panama canal. When he turned beyond the Americas, Trump’s most telling line signaled restraint: “We will measure our success not only by the battles we win but also by the wars that we end – and perhaps most importantly, the wars we never get into.”Then Marco Rubio, the secretary of state, made even more pointed and intriguing remarks. Rubio ran for president in 2016 vowing to usher in a “new American century”, the mantra of post-cold war neoconservatives. But days ago, sitting for his first lengthy interview as America’s chief diplomat, he emphasized the need for a foreign policy grounded in the US national interest and said:“So it’s not normal for the world to simply have a unipolar power. That was not – that was an anomaly. It was a product of the end of the cold war, but eventually you were going to reach back to a point where you had a multipolar world, multi-great powers in different parts of the planet. We face that now with China and to some extent Russia, and then you have rogue states like Iran and North Korea you have to deal with.”For a US secretary of state to announce that the world is now “multipolar”, or is inevitably heading in that direction, is historically significant. Hillary Clinton also used the m-word in 2009 at the start of her tenure in the same role, but she invoked it less than affirmatively: Clinton professed a desire to move “away from a multipolar world and toward a multipartner world”. Rubio, by contrast, meant that a world of multiple poles or powers is to be accepted, not resisted. He also implied that US foreign policy had long been off course, having taken unrivaled American dominance to be a normal or necessary condition when in fact it was destined to disappear. At the end of the cold war, Rubio explained: “We were the only power in the world, and so we assumed this responsibility of sort of becoming the global government in many cases, trying to solve every problem.”The message: no longer.Still, no longer could lead down any number of roads. Read against the Trump administration’s Americas-centric start, Rubio’s comments have provoked dread – or excitement, depending on the perspective – that the United States will radically reduce its political-military role beyond the western hemisphere even as it asserts its power within the Americas.For traditional figures in Washington, the fear is that Trump 2.0 will give China and Russia a free hand to command “spheres of influence” in their regions, so long as they permit the United States to police its own sphere. For advocates of US restraint overseas, the hope is that Trump will deliver on his promises to end the wars in Ukraine and the Middle East, shift more responsibility for defending Europe on to the shoulders of European allies, and seek to find a stable if competitive mode of coexistence with China. If Rubio thinks the world is now multipolar, presumably it follows that the United States should abandon the approach it pursued in the bygone age of unipolarity – a grand strategy of “primacy” or “hegemony”, as scholars call it.Perhaps. Rubio, though, was not nearly so conclusive. Throughout the interview, he referred to the governments in Moscow and Beijing in adversarial terms, which hardly suggest a willingness to grant them spheres of influence. Nor is there a straight line from acknowledging the loss of unipolarity to abandoning primacy. Even in a crowded, competitive landscape, the United States could try to remain militarily stronger than every rival, retain all its globe-spanning defense commitments, and maintain a large troop presence in Asia, Europe and the Middle East simultaneously. Those are the elements of primacy. Rubio did not renounce any of them. The United States, in short, could still pursue primacy without enjoying unipolarity.Indeed, in associating multipolarity with the existence of “multi-great powers”, Rubio may have meant to affirm the outlook of the first Trump administration, which adopted “great power competition” as a watchword. For Trump 1.0, as for the Biden administration that followed, the rise of China and the assertion of Russia did not compel Washington to pare back its military commitments and presence. Quite the contrary. Over the two presidencies, Nato enlarged to four new countries, the US military presence in the Middle East (excluding Afghanistan) remained stable, and the United States deepened security cooperation with Ukraine, Taiwan and others.So far, the appearance of formidable rivals has done less to discipline US ambitions than to furnish US global primacy with a new rationale – to stand up to the aggressive and revisionist activities of America’s adversaries. As Rubio put it: “China wants to be the most powerful country in the world and they want to do so at our expense, and that’s not in our national interest, and we’re going to address it.”But Rubio did signal more restraint than a continuation of business as usual. Just after his remarks on multipolarity, he noted that the second world war ended 80 years ago and that “if you look at the scale and scope of destruction and loss of life that occurred, it would be far worse if we had a global conflict now.” Since the end of the cold war, US leaders have invoked the second world war almost exclusively to exhort the country to lead the world. Rubio, by contrast, did so to caution against the dangers of overreach. He continued:“You have multiple countries now who have the capability to end life on Earth. And so we need to really work hard to avoid armed conflict as much as possible, but never at the expense of our national interest. So that’s the tricky balance.”Quite so. In recent years, the risk of conflict between major powers has grown acute. The war in Ukraine – in which one major power is fighting directly on its borders and the other heavily arming its opponent – had no parallel during the cold war. A US-China military conflict over Taiwan would be ruinous. In a country unused to paying noticeable costs for foreign policy choices, and a world that no longer remembers the last general war, Rubio delivered a salutary message.The policy test, however, is still to come. If the new administration is serious about avoiding catastrophic wars, without exposing core US interests to great power predation, it will make a determined, sustained diplomatic effort to end the war in Ukraine and minimize the risks of escalation if initial talks do not succeed. It will explore politically difficult ways to reach a modus vivendi with China, including by offering assurances that the United States does not seek to keep Taiwan permanently separate from the mainland, a red line for Beijing.The new administration’s opening moves suggest some intention to find a more sustainable and less confrontational approach toward the world’s major powers. But if unipolarity is dead, the lure of primacy remains very much alive.

    Stephen Wertheim is a senior fellow in the American statecraft program at the Carnegie Endowment for International Peace and a visiting lecturer at Yale Law School and Catholic University More

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    The forgotten faces of Christmas in China | Letter

    Reading “made in China” on his toys for the first time, my young Chinese nephew asked me innocently whether Santa was Chinese. Oddly, like Santa’s elves, toy assembly workers in China remain remote and faceless to most of us in the west. In Britain, most Asian migrants work backstage, too, kept in kitchens or workshops, taking the first and last train, earning low wages and hidden from our eyes. In many countries this Christmas, instead of being acknowledged for alleviating our cost of living crisis, those foreign workers will be vilified for stealing our jobs and threatened with tariffs whose consequences economists are still not certain about.It is always easier to blame people who remain invisible and voiceless. Although our world has never been so interconnected, and hence our nations so reliant on each other’s labour, Chinese society remains poorly understood. In the west, Chinese people remain enigmatic, the ever-silent and under-represented minority. When scrutinised, it is often with a political lens as well, maybe showing some cognitive bias.The question today should be how much value the free movement of products and people has brought to our nations and how to ensure that it keeps doing so in the future. As evidenced by world history, curiosity and interest towards foreign societies has often been an engine of progress. Christmas is a time to reach out and be thankful to one another: it is hoped that this spirit will continue to animate our politicians and societies in this coming year.Hugo WongAuthor of America’s Lost Chinese; London More

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    China Pledges More Stimulus to Shore Up Flagging Economy

    At a meeting to set the party’s economic policy agenda, China’s leadership said it would borrow more and cut interest rates in a bid to bolster growth.China’s top leaders on Thursday pledged more stimulus measures to shore up the country’s economy, building on steps they have taken in recent months to bolster growth.At an annual gathering of the Chinese Communist Party and the cabinet, led by the country’s top leader, Xi Jinping, officials agreed that the government should allow a bigger budget deficit, borrow more and cut interest rates, the state television broadcaster said on Thursday.The statements suggest a willingness by Beijing to take more aggressive steps to increase spending, part of a shift that began in September to turn around years of weak consumer demand, lackluster growth and declining prices.China “will need to maintain economic growth and maintain overall stability of employment and prices next year,” the state broadcaster said at the conclusion of the two-day Central Economic Work Conference, which sets the economic agenda for the upcoming year.The Chinese government typically uses the conference to signal priorities that could translate into policy action in the next year, and to agree on budget details that will be announced at the spring legislative session.Earlier this week, the ruling Politburo gave a rare public acknowledgment that Beijing needed to take a stronger approach on the economy, when it indicated it would be more willing to lower interest rates. It was the first time that China’s leaders had eased their stance on monetary policy since the aftermath of the global financial crisis 14 years ago.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More