{"id":84333,"date":"2025-02-10T00:00:00","date_gmt":"2025-02-10T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/logistics\/2025\/02\/10\/chinas-trade-loophole-has-come-to-an-end-updates-from-panama-and-fedex\/"},"modified":"2025-02-10T00:00:00","modified_gmt":"2025-02-10T00:00:00","slug":"chinas-trade-loophole-has-come-to-an-end-updates-from-panama-and-fedex","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/logistics\/2025\/02\/10\/chinas-trade-loophole-has-come-to-an-end-updates-from-panama-and-fedex\/","title":{"rendered":"China\u2019s trade loophole has come to an end + Updates from Panama and FedEx"},"content":{"rendered":"

US President Donald Trump\u2019s decision to close a tariff loophole used by Chinese firms will cost tens of <\/strong>bns<\/strong> of USD in trade and stunt China\u2019s economic growth<\/strong>, Bloomberg<\/a> reported on Thursday, citing estimates by Nomura Holdings. The loophole saw certain Chinese firms ship goods in bulk into Mexico and break them into small packages to enter the US in a bid to circumvent duties that are normally applied to larger shipments. Chinese companies \u2014 including Temu and Shein \u2014 shipped USD 46 bn worth of small packages to the US, with China reporting nearly USD 23 bn worth of these exports last year<\/p>\n

The impact<\/strong>: The end of the loophole and introduction of 10% tariffs or more will potentially reduce China\u2019s total export growth by 1.3% and cut their domestic product growth by 0.2%. Chinese e-commerce companies, such as Temu and Shein, which both shipped USD 46 bn worth of small packages to the US, are set to be hard hit.<\/p>\n

\n

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Panama\u2019s<\/strong> in the spotlight again<\/strong>:<\/strong> The Panama Canal Authority has denied reports that US government ships will be allowed to transit the waterway without paying fees, after the US State Department said it was exempt from charge fees on Wednesday, Reuters<\/a> reported on Thursday. US President Donald Trump last week called the canal fees \u201c a complete rip-off<\/a> \u201d and called for annexing the canal if the authorities fail to reduce transit fees for US ships.<\/p>\n

REMEMBER- <\/strong>US Secretary of State Marco Rubio has demanded<\/a> that Panama curb China\u2019s influence over the global shipping route \u2014 both China and Panama have denied any such influence \u2014 or \u201cface immediate consequences\u201d in a conversation with Panamanian President Jos\u00e9 Ra\u00fal Mulino last week. Panama initiated an audit into Hong Kong-based Hutchison Ports last month<\/a> to confirm adherence to the terms of a 25-year concession awarded to the company, pledging a \u201csevere and strong\u201d financial audit. <\/p>\n

\n

\n

FedEx<\/strong> acquires <\/strong>RouteSmart:<\/strong> Delivery giant FedEx has acquired route optimization solutions firm RouteSmart Technologies to increase its operational efficiency and bolster its tech operations, according to a statement<\/a> released last week. FedEx will combine its physical and data networks with RouteSmart Technologies\u2019 expertise to expedite the integration of common route optimization in its operations. FedEx has been using RouteSmart\u2019s Routing as a Service (RaaS) product for years for its internal FedEx Route Optimization tool, the statement adds. <\/p>\n","protected":false},"excerpt":{"rendered":"

Stories on our radar this morning from around the world<\/p>\n","protected":false},"author":1,"featured_media":84334,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[149],"tags":[148,206,123,54],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-84333","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-around-the-world","tag-around-the-world","tag-panama-canal","tag-shipping-maritime","tag-us","wpautop","entry"],"acf":{"mongo_id":"66c1c8ef-7ecf-41ef-a6d2-d51b1dedac77","order":"12","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2025\/2\/838.jpg","photo_position":"above","homepage_title":"","full_issue_title":"China\u2019s trade loophole has come to an end + Updates from Panama and FedEx","related_issue":[84313],"teaser":"Stories on our radar this morning from around the world","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2025\/2\/.48bf3f5d-d68f-48f5-8f5b-8f23cd6fc062.mp3"},"yoast_head":"\nChina\u2019s trade loophole has come to an end + Updates from Panama and FedEx - 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