News summary
US increases taxes on low-value consumablescongocash, tax rate 0%-50%congocash, or weaken China's export competitiveness.
Newsletter text
[Chinese market seeks new opportunities to deal with U.S. tariff shocks]
The United States announced that it will implement a new tax rate policy on low-value consumables such as syringes starting May 14, with tax rates fluctuating between 0% and 50%. This move has had a significant impact on the low-value consumables industry, which originally had a gross profit margin of 20% to 40%. The significantly increased tax rate may greatly weaken the competitive position of Chinese products in the U.S. market.
Tensions in Sino-US trade relations and uncertainties in trade frictions indicate that more tax increases and restrictions may emerge in the future, which will bring more challenges to Chinese exporters.