Washington weighs a 7.5 per cent China duty as Shein's Everlane purchase enters a CFIUS review
People familiar with the talks say a 7.5 per cent duty on China's excess capacity is under consideration and not yet final. Separately, CFIUS is reviewing Shein's 80 million dollar purchase of Everlane, completed in May.
Economics & Markets··Morning
A 7.5 per cent China duty is under consideration and is not yet final
Donald Trump has moved closer to a new tariff on China for flooding the world market with underpriced goods, according to three people familiar with the deliberations. Two said the rate under consideration is 7.5 per cent, and the decision is not yet final. Officials believe that level would not endanger the one-year trade truce or the meeting between Trump and Xi Jinping. The investigation was opened in March under Section 301 of the Trade Act of 1974. China's embassy in Washington rejected the overcapacity claim and said such matters should be settled through bilateral talks.[1]
CFIUS reviews Shein's 80 million dollar Everlane purchase after the deal was completed
US authorities are reviewing Shein Global Holdings's purchase of the American clothing retailer Everlane on national security grounds, people familiar with the matter said. The 80 million dollar transaction was completed in May. The review is being run by CFIUS, the interagency panel chaired by the Treasury. The same people said Shein initiated it voluntarily after the deal was completed, which is unusual because companies normally seek approval beforehand. Clearance by CFIUS largely forecloses later challenges, but the panel can also block, unwind or attach conditions to a transaction.[2]
The China duty is still a deliberation, while Everlane already sits inside CFIUS
The 7.5 per cent duty remains a rate under consideration, and the people familiar with those talks said the decision is not yet final. The Everlane purchase, by contrast, was completed in May at 80 million dollars and only then entered the CFIUS review that Shein opened voluntarily. CFIUS can still block, unwind or attach conditions to that completed transaction, while China's embassy in Washington has already rejected the overcapacity claim behind the tariff debate.[1], [2]
