In April 2025, the U.S. government raised tariffs on Chinese imports to an average effective rate of 145%, marking a significant escalation in trade tensions. This move has already disrupted trade flows and sparked concerns among consumer brands about its potential impact on operations and supply chains.
Although the newly proposed tariffs primarily target high-tech and industrial sectors, the ripple effects could be considerable for consumer brands operating in China, particularly those engaged in cross-border e-commerce or general trade.
According to China Customs, the total import and export volume of cross-border e-commerce in 2024 reached RMB 2.3 trillion, with imports accounting for over 30%. Affected product categories range from everyday essentials to premium lifestyle goods, meaning any shift in trade policy could have broad implications for international brands.
U.S. Tariff Policy: What’s Driving It?
Continued Tariffs:
The U.S. will maintain tariffs on $370 billion of Chinese goods, targeting consumer products, raw materials, and components. For brands sourcing ingredients or packaging from the U.S., this could drive up costs.
Potential Expansion:
While current measures focus on high-tech sectors, future rounds may extend to critical inputs for food, skincare, packaging materials, and other consumer goods entering China.
Possible Chinese Countermeasures
China’s Ministry of Commerce has indicated it may respond with technical trade barriers or stricter import protocols, potentially complicating customs clearance and increasing regulatory hurdles.
How Imported Consumer Brands Could Be Affected
Fluctuating Raw Material Costs:
Ongoing or increased tariffs on U.S.-origin materials could pressure pricing strategies and profit margins. In 2024, bilateral trade between China and the U.S. totaled RMB 4.898 trillion (approximately USD 668 billion), underscoring the potential scale of the impact.
Greater Customs Risks
Trade tensions could result in stricter customs checks, longer clearance times, and more complex documentation requirements for goods containing U.S.-sourced ingredients or packaging, delaying time-to-market.
Higher Compliance Costs:
In response to U.S. actions, China has imposed up to 84% tariffs on select U.S.-origin goods. Brands may also face tighter technical standards, such as enhanced traceability, stricter labeling, and additional product registration requirements.
Need for Flexible Channel Strategies:
While general trade imports face rising risks, cross-border e-commerce remains largely unaffected by the latest tariff changes, offering international brands a strategic pathway into China with fewer immediate regulatory barriers.
Conclusion
While the full impact of recent U.S.-China trade tensions is still unfolding, brands operating in or exporting to China must closely monitor changes, adapt supply chain strategies, and consider cross-border e-commerce as a resilient entry point into the market.