Tariff Backlash: Developing nations are cornering China

TRADE NEWS

Emerging Economies Declare Trade War on China’s Exports

Emerging markets are increasingly implementing tariffs to counter China’s export boom, particularly in the electric vehicle (EV) sector. These tariffs not only protect local industries but also push Chinese companies, like BYD, to establish manufacturing plants within their borders. Brazil, Turkey, and Thailand have used import duties to attract foreign direct investment from China, prompting local production of EVs. As China’s exports continue to grow, driven by policies favoring domestic manufacturing, developing economies are using these tariffs to level the playing field and foster local industrial growth.

China’s reaction to this strategy has been more restrained compared to its sharp criticism of protectionism from the US and EU. For instance, BYD has agreed to build plants in Brazil and Turkey following tariffs on EV imports. Brazil raised its EV tariffs from 18% to 35% by 2026, and Turkey imposed a 40% levy before BYD announced its investment. These moves reflect how nations are leveraging tariffs to secure a foothold in the rapidly expanding global EV market.

Beyond the EV industry, other sectors in developing countries are also imposing tariffs to combat Chinese competition. Brazil and Chile increased steel tariffs, while South Africa imposed levies on solar panels. Indonesia extended duties on textiles, and Thailand increased VAT on low-value imports. These industries are grappling with the challenge of China’s dominance in global trade.

China’s growing exports put pressure on foreign competitors, especially in emerging markets, and Chinese policies have led to a surge in its trade balance. Developing countries are now seeking a piece of this growth by attracting Chinese investments through strategic tariffs while protecting their local industries from an influx of Chinese goods.

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TRADE NEWS

US Shuts Down 350 Websites Selling Illegal Gun Parts from China

The US Department of Justice has shut down over 350 websites allegedly involved in importing illegal gun parts from China. These parts were used to assemble "ghost guns," unregistered firearms that lack serial numbers, making them nearly impossible for law enforcement to trace. This operation is part of a larger effort to combat the growing threat posed by these untraceable weapons, which have contributed to a rise in violent crime across the US.

The seized websites allowed buyers to easily order components like barrels, triggers, and other essential parts that could be assembled into functional firearms. These weapons, without serial numbers or proper documentation, bypass regulatory checks, making them particularly dangerous and difficult to track.

This action is in line with the Biden administration’s broader push for stricter firearm regulations, particularly surrounding unregulated parts used to create ghost guns. The administration has been working to curtail the availability of these weapons as they are increasingly involved in violent incidents nationwide. The seizure of these websites underscores the government’s commitment to curbing gun violence by addressing the flow of illegal firearm components into the country.

China has faced criticism from US officials for not taking stronger action to prevent the export of these gun parts, although Chinese authorities have denied direct involvement. The US government’s move to seize these websites marks a significant step toward limiting the import of illegal firearm components and highlights the ongoing efforts to address the broader issue of gun violence in the country.

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