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Beyond the Tariff Turmoil: How C-Beauty Can Thrive Amid US-China Trade Tensions

Published May 6, 2025
Published May 6, 2025
Florasis

In early April 2025, the United States significantly escalated its trade measures against China. It imposed sweeping tariffs that profoundly affect various industries, including the beauty sector. On April 9, 2025, President Donald Trump announced that the US would increase tariffs on Chinese imports to 125%, up from 104%. This increase intensifies the ongoing trade war between the two nations. At the same time, the US removed the small package trade loophole, known as the de minimis exemption, which let items under $800 from China and Hong Kong enter the US duty-free. Effective May 2, 2025, low-value packages from China and Hong Kong will incur a 90% tariff or a flat fee of $75 per item, increasing to $150 after June 1.In retaliation, China unleashed an 84% tariff on US goods, intensifying the clash and roiling global markets. These developments have significantly disrupted international trade. Chinese companies selling on platforms like Amazon are now considering price increases or exit strategies from the US market due to untenable costs.While these newly imposed tariffs will impact businesses on both sides, they particularly underscore the urgent need for Chinese beauty brands (C-beauty) to reassess their international strategies, as the increased costs threaten their competitive positioning in the US beauty market. The significant increase in tariffs and the removal of the de minimis exemption have effectively blocked traditional paths for exporting low-priced products directly to the US. This necessitates a shift towards more resilient and adaptive business models that empower C-beauty brands to navigate the fierce economic landscape reshaped by tariffs.

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