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Hey guys,
After a short hiatus, this special mid-week edition of the 80/20 of e-com covers:
U.S.-China trade war is on pause
Ocean shipping rates are creeping higher
Chinese Amazon sellers finally held accountable to paying their taxes
7-Figure Seller Summit 11 - Return of the PROFITS launches November 12-13th
Trump and Xi just hit "pause" on the trade war — not "stop." A one-year tariff rollback gives importers some breathing room, but 2026 could bring the storm back.
The U.S. and China agreed to a one-year trade truce following a 90-minute meeting at the APEC Summit in South Korea. Trump called the talks "amazing" and rated them a "12 out of 10," but experts see the deal as a temporary de-escalation, not a long-term reset.
Trump met with Xi in Korea last week - Tariffs reduced temporarily.
🔑 Key Points (80/20 Summary)
Tariffs reduced — temporarily: The U.S. will cut average tariffs on Chinese imports from 57% to 47%. Tariffs on fentanyl-related chemicals will be halved from 20% to 10%.
China gives ground on commodities: China will buy 12 million metric tons of U.S. soybeans immediately and commit to 25 million tons annually for the next 3 years. Rare earth export curbs are paused for one year.
Both sides ease restrictions: Washington will delay new sanctions on Chinese firms for a year. Both nations will suspend port fees and shipping measures that had hit supply chains.
Still no "reset": Fundamental issues like industrial subsidies, over-capacity, and state-backed manufacturing remain unresolved. Analysts call this a "tactical truce" to stabilize economies and buy time.
Tone: warm words, cold reality: Xi called for a "favorable environment" for both nations' development. Trump called Xi "a great leader of a great country." But both sides are preparing for renewed confrontation in 2026 once the truce expires.
Takeaway: If you're sourcing from China, this is your one-year window to act.
As of right now, China tariffs are actually lower than India's!
Renegotiate prices while tariffs are lower. Secure freight contracts before rates rebound.
Diversify sourcing — Vietnam, Thailand, and Mexico are still ramping up production. When the political cycle resets in 2026, so will trade tensions.
As the U.S. and China trade war dies down for the time being, ocean container rates are increasing by 20% between China and East Asia to North America's West Coast according to the Freightos Baltic Index.
Currently a container goes for $2,027, up 20% since last week.
Ocean freight volatility continues at a rate of about 6.4% as the trade policy developments are impacting shipping routes and ocean freight pricing.
Source: Freightos
Takeaway: Monitor ocean freights closely as we're getting closer to peak season, end of the year and pre-Chinese New Year. Consider timing of shipments based on the rate trends.
In a recent post on LinkedIn by Jianlong Hu, CEO of Brands Factory in China, reports: "Starting October 31, 2025, Amazon will begin quarterly tax reporting to Chinese authorities for the first time, covering July-September 2025 data. This includes: seller identity information, transaction volumes and revenue, platform commissions and fees."
People are speculating that this level is the playing field but the key is compliance. Will businesses be honest and pay their taxes in China?
Having done business in China for over a decade I’ve learned that Laws are one thing, but whether people actually follow them and compliance is enforced is an entirely different story.
You have to remember that China was literally the Wild West less than a decade ago and has come a long way to becoming the superpower that it is now.
China has a very checkered past when it comes to this, and in a recent chat with a Chinese businessman here in Tokyo, he agrees that it's very common practice for Chinese businesses to evade taxes as corporate ethics are defined differently in Chinese culture compared to the West.
This isn't over yet not by a long shot.
7 Figure Seller Summit: Return of the Profits is back on Nov 12-13. This time, we're diving into how top sellers are rebuilding 30% margins and using AI systems that actually work.
If you've felt squeezed by rising costs or overwhelmed by too many "AI tools," this summit is for you. You'll get 11 masterclasses from proven 7- and 8-figure sellers showing what's working right now to move the needle.
👉 Grab your free pass here → https://7figuresellersummit.com/
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💬 Quote of the Week
"This is not a reset — it's a tactical de-escalation so both sides can catch their breath." — Emily Kilcrease, Center for a New American Security
Gary