GoodsFox Daily Insights – October 13, 2025: Trump’s Tariff Threat Reversed
- Trump’s Tariff Threat Reversed
- EU Plans Tariffs on Temu & Shein Parcels
- U.S. Removes Millions of Chinese Electronic Products
- Brazil Proposes to Remove Small Cross-Border Shopping Tax
- OpenAI’s Sora Hits 1 Million Downloads in 5 Days
1. Trump’s Tariff Threat Reversed
On October 10 (EST), President Trump abruptly announced a 100% tariff on Chinese goods starting November 1. He also introduced export controls on “critical software” and hinted at canceling the upcoming U.S.-China summit. The news triggered a sharp sell-off on Wall Street.
Less than eight hours later, Trump reversed course, saying the meeting was still possible. Analysts noted the policy volatility came after his Nobel Peace Prize loss, adding uncertainty to U.S.-China trade.
The tariff move is not yet finalized by the White House and is scheduled after the potential Oct 29 leaders’ summit — signaling room for negotiation. The market now watches closely whether this “tariff standoff” will ease after the high-level talks.
2. EU Plans Tariffs on Temu & Shein Parcels
The Financial Times reports that several EU capitals are considering new tariffs or fees on small parcels from Chinese platforms Temu and Shein.
These platforms have benefited from the EU’s low-value import exemption, allowing duty-free entry for packages under a set threshold. This loophole gave them a cost advantage over local eCommerce stores.
To restore fair competition, the EU may bring all low-value imports under VAT coverage or add a special handling fee.
If approved, this policy could raise logistics and tax costs for cross-border sellers, forcing Temu and Shein to rethink pricing and supply chain strategies. Local retailers, on the other hand, could regain competitiveness. The final policy framework will likely reshape the EU’s cross-border eCommerce landscape in 2025.
3. U.S. Removes Millions of Chinese Electronic Products
On October 10, FCC Chairman Brendan Carr announced that major U.S. online marketplaces have removed millions of Chinese electronics under the “Operation Clean Carts” initiative.
Products from Huawei, ZTE, and other firms were flagged as national security risks and added to the FCC’s blacklist. A vote later this month could expand restrictions to devices using blacklisted components.
This move could significantly impact cross-border sellers. Chinese-made electronics dominate categories like smart home, security cameras, and communication devices.
Sellers exporting to the U.S. must closely monitor these updates and ensure full compliance to avoid takedowns or legal risk.
4. Brazil Proposes to Remove Small Cross-Border Shopping Tax
Brazilian congressman Kim Kataguiri proposed removing the 20% import tax on international purchases below $50.
The so-called “mini tax” began in August 2024 as part of the “Compliance Remittance Plan” but led to an 11% drop in cross-border shopping. Critics argue it burdened low-income consumers without meaningful tax gains.
If passed, only the state tax (ICMS) of 17–20% will remain, simplifying processes and reducing bureaucracy.
Platforms like Shein and Shopee could see improved sales and user growth. The proposal marks a key effort to balance domestic retail protection with global digital commerce expansion.
5. OpenAI’s Sora Hits 1 Million Downloads in 5 Days
OpenAI’s new AI short video generator “Sora” has gone viral since its late-September launch. Within five days, downloads surpassed 1 million, topping the App Store charts — even faster than ChatGPT’s early growth.
Currently available by invitation only for iOS users, Sora allows text-based video generation. OpenAI CEO Sam Altman confirmed rapid product updates are underway to meet rising demand and enhance user experience.
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