POLITICO Tech Trump’s (latest) tech war with China begins
Feb 6, 2025
Chad Bown, a senior fellow at the Peterson Institute for International Economics and former chief economist at the State Department, sheds light on the ongoing trade tensions between the U.S. and China. He discusses the significant impact of the 10 percent tariff on Chinese imports and its repercussions for tech companies. Bown also delves into how e-commerce businesses like Timu and Wish are adapting to new regulatory challenges. Additionally, he explores the broader geopolitical implications of these trade policies in the tech landscape.
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Shifting Imports and New Tariffs
- The initial 25% tariffs on some Chinese goods led to shifts in import patterns.
- New 10% tariffs now affect previously untaxed consumer electronics, impacting both countries.
Tech Tariffs and China's Retaliation
- Tech products initially avoided Trump's first tariffs but face them now.
- China's retaliation includes an anti-monopoly probe against Google, signaling pressure on US tech firms.
De Minimis Exemption Closure
- Trump closed the $800 de minimis exemption for Chinese imports, impacting direct-to-consumer retailers.
- This may cause shortages or price increases for American consumers and force companies like Temu and Shein to adapt.