G7 weighs joint tariffs on low-value Chinese imports amid overcapacity issues | Forexlive

Group of Seven (G7) nations are in discussions over coordinated tariff measures focusing on low-value Chinese imports, as Western economies develop more and more cautious of what they describe as Beijing’s non-market practices and industrial overcapacity.

Canada’s Finance Minister François-Philippe Champagne confirmed that talks are underway amongst G7 members to deal with the surge in cheap Chinese items, which are sometimes bought via e-commerce platforms at costs that evade conventional tariffs. Champagne emphasised overcapacity points and non-market behaviour that he says is distorting world commerce.

The initiative follows latest strikes by the United States to revoke the so-called de minimis exemption for sure Chinese e-commerce shipments. Under the earlier guidelines, packages valued beneath $800 may enter the U.S. with out incurring duties. The change, championed by Trump, targets widespread platforms similar to Temu and Shein, which have been accused of exploiting loopholes to flood Western markets with ultra-cheap items.

European governments are additionally contemplating related measures. France, the UK, and the broader European Union have floated proposals to impose duties or administrative charges on low-value imports, with a concentrate on re-establishing truthful competitors for home producers and curbing the dominance of Chinese provide chains.

The talks sign a coordinated shift amongst developed economies to counterbalance China’s commerce mannequin, which officers argue is more and more reliant on state-backed overproduction and aggressive pricing methods throughout sectors starting from photo voltaic panels to shopper electronics and textiles.

While concrete motion has but to be finalised, G7 officers recommend that tariffs on small packages could possibly be certainly one of a number of steps taken to deal with what they view as a systemic imbalance in world commerce flows.