© 2025 WPIC Marketing + Technologies
SUCCEEDING IN A
TIME OF TARIFFS
June 2025
国际资本市场研报资讯+V: quanqiuzixun8
Table of Contents
2 Succeeding in a Time of Tariffs
The View from Beijing: A Letter from Jacob
Cooke
03
05
08
16
20
Summary of Latest .–China Trade Policy
Developments (2024–2025)
Strategic Guidance for American Brands
Opportunities in China for Non-American
Brands
Conclusion
国际资本市场研报资讯+V: quanqiuzixun8
The View from Beijing
Greetings from Beijing.
As I write this, the energy on the ground here
is surprisingly upbeat. Chinese consumer
confidence has been on the rise in 2025,
buoyed by government stimulus. Retail sales
climbed % in the month of April, and
China’s Labour Day holiday at the beginning
of May set record highs in the number of
travelers and overall spend. The market is
buzzing with activity – especially online.
Perhaps contrary to what the headlines about
tariffs and tensions suggest, Chinese
shoppers haven’t put away their wallets.
This renewed consumer confidence has been
a bright spot amid the .–China trade war.
Even as geopolitical tensions escalated across
the first half of 2025, China’s massive
consumer base has been eager as ever for
international goods. Walking through Beijing’s
shopping districts or scrolling through Tmall, I
see foreign cosmetics, fashion, supplements,
and baby products flying off the (digital)
shelves. The appetite for high-quality,
imported brands is alive and well, reinforced
by a younger generation that’s globally
minded and digitally savvy.
From my vantage point, the lesson is clear:
China should be viewed as a critical growth
pillar for brands worldwide. Yes, global trade
policies are in flux, and yes, doing business
has gotten more complex. But the
fundamental demand from Chinese
consumers is strong. They’re confident,
they’re spending, and they’re looking for the
best the world has to offer.
In the pages that follow, our team at WPIC
Marketing + Technologies will break down
what the current .–China trade spat
means for global brands. We’ll explore the
latest policy moves on both sides, identify
opportunities for . brands, and offer
strategic guidance for American brands
navigating these choppy waters. The goal is to
help you make informed decisions in an
uncertain landscape – balancing risks in the
. market with growth in China and beyond.
I hope this report provides valuable insights
as you refine your global strategy. Despite the
challenges, the opportunities here in China
remain immense for those willing to adapt
and innovate. We at WPIC are here to help
you capture that next wave of growth in the
world’s most dynamic consumer market.
Sincerely,
Jacob Cooke
CEO, WPIC Marketing + Technologies
3 Succeeding in a Time of Tariffs
Jacob Cooke
CEO, WPIC Marketing + Technologies
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Summary of Latest US–China Trade
Policy Developments
The trade tension between the United States
and China escalated to historic levels in early
2025, affecting not only these two
economies but also causing ripple effects
globally. The table below summarizes the
most recent tariff and trade policy actions by
both the . and China, as well as .
measures targeting other trading partners.
The framework deal reached in London on
June 11 sets . tariffs on Chinese goods at
55% and Chinese tariffs on . goods at
10%—but it’s no guarantee that this deal
holds. Either way, global brands should not
bank on a return to a pre-trade-war normal.
5 Succeeding in a Time of Tariffs
DATE
(2024–2025)
. ACTIONS AGAINST
CHINA
CHINA’S RESPONSES BROADER .
TARIFF MOVES
April 2025
(Trade War
Escalation)
President Donald Trump
raised tariffs on Chinese
imports – up to 125–
145% – effectively
amounting to a trade
embargo on Chinese
goods. The . also
ended the de minimis
duty-free exemption for
low-value imports from
China.
China retaliated swiftly,
imposing tariffs as high as
125% on . goods.
China also rolled out
countermeasures beyond
tariffs – restricting exports
of critical minerals and
adding certain . firms
to an “Unreliable Entity”
blacklist.
The . imposed
sweeping duties on
dozens of other
countries. Key allies
and partners like the
EU, UK, Canada, and
Australia were hit with
new import tariffs
(. on steel,
aluminum, and other
goods).
May 2025
(Attempts
At Easing)
Facing market turmoil,
. officials agreed to
hold “ice-breaker” talks
with China in Geneva. The
. indicated willingness
to pause or roll back
some tariffs if China
reciprocates (even .
officials admitted that
100%+ tariffs are
“equivalent of an
embargo” and not
sustainable).
China met with .
negotiators and injected
monetary stimulus at
home to offset the tariff
impacts. However, Beijing
also warned other
countries not to strike
side deals with the .
that harm China’s
interests, vowing “resolute
countermeasures” if that
happens.
The . signaled
relief for allies: a 90-
day tariff pause was
implemented for
some countries
(excluding China).
Nonetheless, global
supply chains
remained on edge.
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6 Succeeding in a Time of Tariffs
Why This De-Escalation May Not
Change Much
Even under the framework deal agreed to
in London on June 11, tariffs are much
higher than in 2024 and we do not expect
a reversal. Companies should also brace
for further uncertainty. . tariff rates on
China and other trading partners might
seesaw with political negotiations and
domestic . developments—legal appeals
could continue up to the Supreme Court—
but the fundamental risk of sudden policy
shifts remains high. Our recommendations
therefore assume that unpredictability will
persist. Plan your business as if tariffs and
tensions will be ongoing factors.
DATE
(2024–2025)
. ACTIONS AGAINST
CHINA
CHINA’S RESPONSES BROADER .
TARIFF MOVES
May 12,
2025 (90-
day Tariff
Truce)
After .-China meetings
in Geneva, the .
announced a 90-day
suspension of select
tariffs on Chinese goods
as a goodwill measure to
de-escalate tensions and
stabilize markets.
Reciprocally agreed to
reduce or pause certain
tariffs on . imports for
the same 90-day period,
offering temporary relief
to importers and
signaling a willingness to
negotiate further.
On May 28, a .
trade court ruled to
block many of
Trump’s tariffs—but a
higher federal
appeals paused the
ruling, keeping tariffs
in place. Appeals and
legal jockeying could
continue.
June 11,
2025
After weeks of tensions
following Geneva, .
and Chinese negotiators
met in London and
reached a “framework
deal”. The . will keep
~55% tariffs on Chinese
goods, while agreeing to
ease some export
controls. Deal specifics
and implementation are
unclear.
Under the London
framework deal, China will
maintain 10% tariffs on
. goods and resume
rare-earth exports for six
months; trade teams to
work toward
implementing Geneva
truce.
The . has indicated
it will likely extend the
90-day reprieve on
higher tariffs for
certain key trading
partners amid
negotiations, but
imports to the .
face a baseline 10%
tariff.
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Opportunities in China for
Non-American Brands
While American firms find themselves in the
crossfire of the trade war, brands from other
countries have a unique window of
opportunity. The volatility of the .–China
relationship and broader . tariff actions
make a compelling case for brands to
diversify away from the American market—
which many Western brands consider to be
their top market.
Here’s why . brands should lean in:
1. . Market Risks Are Rising
The United States has shown a willingness to
levy tariffs even on close partners in pursuit
of its trade goals. Washington’s aggressive
use of tariffs means European, Canadian,
Australian, and other exporters can no
longer assume stable access to the .
market. If your brand’s fortunes are heavily
tied to . sales, diversifying is now
essential risk management.
2. China’s Market Size in Key
Sectors Rival – or Surpass – the
.
Our Q1 2025 China e-commerce data report
shows just how enormous China’s consumer
market is compared to the ., driving huge
revenue numbers across many categories.
Non-American brands can tap into this
growth engine.
8 Succeeding in a Time of Tariffs
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9 Succeeding in a Time of Tariffs
For context, consider the following
comparisons:
Beauty & Personal Care
China’s online beauty market reached
$ B in 2024 after resuming growth, not
far off from the entire . beauty market
(~$100 B annually) in size. Douyin (China’s
TikTok) has even surpassed Tmall as the top
platform for beauty sales, indicating huge
social commerce potential. In short,
Chinese consumers are spending
comparable amounts on skincare,
cosmetics and luxury beauty as Americans,
and they’re increasingly buying from new
digitally native brands touted by
influencers. This is fertile ground for foreign
beauty brands – especially those from
Europe, Japan, Korea, etc., who aren’t
caught in the tariff crossfire.
China Beauty E-commerce Market Trend
$
$ $
$
$ $
$ $ $
2022 2023 2024
Tmall Douyin JD
-19%
-9%
+37% +11%
+29%
-10%
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10 Succeeding in a Time of Tariffs
Fashion & Apparel
China’s fashion e-commerce sales boomed
to $ B in 2024, growing 36% year-on-
year. This number is staggering – it’s
roughly double the size of the . online
fashion market (estimated around $140–
150 B). Even accounting for offline retail,
China is on track to overtake the . as
the world’s largest apparel market. For
. apparel brands (., European
luxury houses, fast fashion retailers,
sportswear brands, etc.), the Chinese
consumer base is simply too large and
lucrative to ignore. Demand is surging not
just for luxury, but also for niche and
functional fashion (., outdoor apparel,
athleisure) where new entrants can find
eager audiences.
China Fashion E-commerce
Market Size
-1%
+36%
-5%
0%
5%
10%
15%
20%
25%
30%
35%
40%
$0B
$50B
$100B
$150B
$200B
$250B
$300B
2022 2023 2024
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11 Succeeding in a Time of Tariffs
Health Supplements & Wellness
China’s supplements market continues its
steady rise. In 2024, China’s online sales
of vitamins and dietary supplements hit
$ B. While the . supplement
market is larger (~$55–60 B including
offline channels), China’s growth is
outpacing the West as health
consciousness increases. We see double-
digit spikes in categories like fish oil,
vitamin B, and digestive aids in China.
Notably, Chinese consumers often prefer
foreign-made supplements (for quality
and safety reputation), which is a golden
opportunity for Canadian, Australian,
European and Asian nutraceutical brands.
China Supplements E-commerce
Market Size
+25%
+6%
0%
5%
10%
15%
20%
25%
30%
$0B
$2B
$4B
$6B
$8B
$10B
$12B
$14B
$16B
$18B
$20B
2022 2023 2024
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Pet Care Products
China’s pet ownership is skyrocketing,
fueling a premium pet care boom. Online
pet product sales in China reached $ B
in 2024, growing despite overall economic
headwinds. While Americans still spend
more overall (~$148 B on the pet industry in
2024), Chinese pet parents are rapidly
increasing their spending on premium food,
pet vitamins, and grooming supplies.
Importantly, this is an area where .
brands have historically been strong (pet
food giants, etc.), but with tariffs making .
goods pricey, European, Canadian, and
Australian direct-to-consumer pet product
brands can step in.
China Pet Care E-commerce
Market Size
+2%
+4%
0%
1%
1%
2%
2%
3%
3%
4%
4%
5%
$
$
$
$
$
$
$
2022 2023 2024
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13 Succeeding in a Time of Tariffs
Mother, Baby & Maternity
Despite China’s declining birth rates, the
mother & baby product sector surged to
$26 B in online sales in 2024 (+16% YoY).
Chinese parents are spending more on
premium infant formula, baby care, and
educational products for each child. The
. baby products market, for comparison,
is about $87 B including all channels –
larger in absolute terms, but (just like the
health and wellness category) relatively
mature with slower growth. Non-American
brands, particularly from Europe, Australia,
and New Zealand (which are known for
high-quality baby formula, foods, and gear),
have a strong opportunity in China. In fact,
during past trade tensions (starting in the
first Trump presidency), Chinese buyers
already started shifting towards Australian
and European infant formula when .
brands were less available. Now, with tariffs
in play, that tilt could accelerate.
China Mother & Baby E-commerce
Market Size
+2%
+16%
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
$
$
$
$
$
$
$
$
$
2022 2023 2024
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14 Succeeding in a Time of Tariffs
3. China is Courting New Trade
Partners
Recent public statements by China’s
Ministry of Commerce make it clear that
Beijing “will firmly oppose any deal at
China’s expense” and is “willing to
strengthen solidarity with all parties” that
maintain fair trade. In practical terms, China
has been resolving disputes and resuming
imports from countries like Australia (.,
removing an 80% tariff on Australian barley
in 2023), and expanding imports from
Europe, ASEAN, Africa and Latin America.
For non-American brands, this means you
may find regulatory doors opening wider in
China: faster approvals for products,
favorable import duty reductions, and
inclusion in promotional programs (like
import expos and e-commerce shopping
festivals that highlight goods from “friendly”
nations). Moreover, China continues to
expand cross-border e-commerce channels
for foreign brands to sell to Chinese
consumers. In short, China’s policies and
diplomatic stance are creating a relatively
hospitable environment for brands from
countries other than the .
4. White Space Left by .
Brands Retreating
Every tariff or sanction that hits a .
company in China creates an opportunity
for someone else. If American brands scale
back investment in China due to tariffs – for
example, cutting marketing budgets,
delaying new store openings, or hesitating
to localize new products – their absence
leaves a gap in consumer attention. Nimble
international competitors can seize this
white space. Consider categories such as
supplements, beauty, fashion, or food
products: a lull by big . names (whether
due to tariffs, compliance challenges, or
public sentiment) can be filled by European,
Canadian and Australian brands offering
comparable quality. We’ve already
witnessed this in some sectors. For
instance, after punitive tariffs and political
frictions curtailed . agricultural exports,
Brazilian, Canadian, and European
exporters captured that market share in
China. The same can happen at the
consumer brand level – Chinese retailers
and platforms will quickly seek alternatives
if a once-popular . brand becomes
harder to stock or if its pricing goes up due
to tariffs. . companies should be
ready to step in with the right partnerships
and distribution when those moments
arise.
Conclusion
In summary, for brands from outside the
United States, the current climate presents
a chance to double down on China and
other high-growth markets. Diversifying
your global footprint now will not only
mitigate . trade risks but also position
your brand in front of the world’s most
dynamic consumer audiences. Companies
that act decisively – reallocating resources
to Asia, adapting products to local tastes,
and capitalizing on the goodwill extended
by Chinese policymakers – can capture
significant upside in this realignment of
global trade. The key is to move strategically
and swiftly while . rivals are entangled in
tariff troubles.
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Strategic Guidance for American
Brands
For .-headquartered brands, the
landscape is admittedly challenging – but not
without workarounds and silver linings. Under
the framework deal reached in London, most
. brands will face a 55% tariff on importing
China-sourced goods or parts into the .,
and a 10% tariff on selling into China.
American companies have spent decades
building brand equity in China, and the
current trade war threatens to erode some of
that. However, with the right strategies, .
brands can weather the tariff storm and find
growth – both in China and the broader Asia-
Pacific region.
Below we outline our guidance:
1. Leverage Cross-Border E-
Commerce (CBEC) to Bypass
Tariffs
One critical fact often overlooked in doom-
and-gloom trade war talk is that China’s tariffs
on . goods apply to traditional imports, not
personal consumer purchases via cross-
border e-commerce. In other words, if you
sell to Chinese consumers through online
CBEC channels (such as Tmall Global, JD
Worldwide, Douyin E-Commerce Global),
those sales do not incur the punitive customs
tariffs that standard imports do. Sectors like
beauty, nutraceuticals (supplements), pet
food, and mother-baby products fall squarely
in this sweet spot – they are popular in cross-
border e-commerce and typically within
personal import limits. For example, a .
vitamin brand or skincare line can be shipped
directly to Chinese consumers or stocked in a
bonded warehouse in China for online sale,
avoiding the import duties that would apply if
the same products were bulk-imported by a
distributor.
The bottom line: American brands need to
optimize their channel strategy. Embrace
cross-border e-commerce retail which
remains a viable, tariff-free (or tariff-light)
route to the Chinese customer, one largely
insulated from the trade war’s tariffs. As an
added benefit, CBEC also often requires less
regulatory red tape for product approvals in
China in categories like cosmetics and foods,
since they are treated as personal use
imports.
16 Succeeding in a Time of Tariffs
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17 Succeeding in a Time of Tariffs
2. Monitor and Guard Your
Brand’s China Presence – Gaps
Will Be Filled
If your brand reduces investment in
Chinese marketing due to cost-cutting or
uncertainty, be aware that competitors
(from Europe, Asia, or domestic Chinese
brands) will happily fill the void. Chinese
consumers have plenty of options; and
loyalty can be up for grabs if you go quiet.
Thus, even in tough times, maintain at least
a baseline of engagement: keep your Tmall
flagship store assortment fresh, continue
interactions on social platforms like Weibo,
WeChat, and Xiaohongshu, and support
your local partners.
Consider this paradox: some . consumer
brands might decide to “wait out” the trade
war by pausing new initiatives in China – but
if the war drags on for years, that’s lost
momentum in a competitive market that’s
hard to regain. As our data shows, core
consumer demand in China (for beauty,
fashion, wellness, etc.) is still growing – if
American brands pull back, someone else
(., your competitors) will satisfy that
demand. Don’t let years of brand-building in
China go to waste.
3. Optimize Supply Chains and
Pricing to Offset Tariff Costs
Another strategy for . brands is more
operational – finding ways to prevent the
tariffs from bloating retail prices in China.
This could involve re-routing your supply
chain. For instance, if you manufacture
products in the . and those goods now
face a 10% tariff entering China, can you
shift some production to another country
not subject to tariffs? Many companies are
exploring “China for China” manufacturing –
producing inside China for the local market
to avoid import duties.
Additionally, adjust your pricing strategy to
be agile. Where possible, use promotions,
bundle deals, or smaller package sizes to
keep Chinese consumer price points
attractive despite tariffs. Some . brands
have quietly absorbed part of the tariff cost
in their margins to stay competitive in
China. While not ideal for profitability,
consider it a short-term marketing
investment – the cost of maintaining market
share until tariffs hopefully reduce. Each
company’s tolerance will differ, but it’s a
strategic calculation: lose a bit on margin
now to retain customers, versus risk losing
the market entirely and having to re-enter
later at great expense.
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18 Succeeding in a Time of Tariffs
4. Use Asia-Based Inventory to
Serve Other Markets
One creative tactic we recommend for
American brands struggling with excess
inventory or slow sales in China is to
repurpose that stock to other Asia-Pacific
markets that don’t have tariffs against .
goods. The Asia region beyond China is
experiencing its own consumption boom –
Southeast Asia, for example, has a rising
middle class and vibrant e-commerce scene.
If you have product already in Asia (perhaps
sitting in a bonded warehouse) that has
become less competitive due to tariffs, you
might be able to export/re-export it to
nearby markets. For instance, outdoor
sporting goods or premium health
supplements that aren’t moving in China
could be very attractive in markets like
Vietnam, Indonesia, or South Korea where
. products aren’t facing special tariffs.
Hong Kong and Singapore are other free-
trade hubs that can serve as redistribution
points. By doing this, you minimize write-offs
and capitalize on demand in tariff-free
markets. Logistically, a bonded warehouse in
China’s free trade zone could re-route goods
without incurring Chinese import tax.
The key is to be flexible: Asia-Pacific is not
one monolithic market, but a tapestry of
many markets. If one door is partly closed
(China general trade), find another open
door (China cross-border e-com, or other
Asian countries). This way, your regional
inventory can be optimized. As a bonus,
your brand gains presence in multiple
markets, aligning with the diversification
principle. Companies that take an Asia-wide
view will fare better than those fixated only
on China or only on the .
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19 Succeeding in a Time of Tariffs
5. Stay Alert to Policy Changes
(and Be Ready to Act)
Finally, American brands must keep a close
watch on policy updates from both
Washington and Beijing. The situation is
fluid, even after the London framework
deal. When an opportunity arises – say
China exempts certain products from tariffs
or raises the personal import quota for
CBEC – you want to capitalize immediately,
ahead of competitors. The companies that
survive and thrive will be those that neither
overreact nor freeze – but rather continually
adapt based on real data and policy signals.
WPIC’s Support
As you navigate these strategies, remember
that you don’t have to do it alone. Our team
at WPIC has experience helping global
brands (American and otherwise) maneuver
through China’s e-commerce channels,
regulatory mazes, and logistical puzzles.
From setting up cross-border online stores
to analyzing market data (like our Discripto™
e-commerce analytics) to reallocating
campaign spend, we offer the on-the-
ground expertise to execute the tactics
mentioned. Despite the trade war
headwinds, China’s consumer market in Q1
2025 is showing growth in core categories
like beauty, fashion, and supplements, and
social commerce is reshaping how products
reach consumers. With the right approach,
. brands can still capture that growth
and even turn the trade war into an
advantage by forcing creative solutions that
make their businesses more resilient
globally.
国际资本市场研报资讯+V: quanqiuzixun8
Conclusion
In conclusion, the current .–China tariff
spat and global tariff turbulence present both
challenges and opportunities. Non-American
brands can capitalize on a more open door in
China – made slightly wider by the recent
tariff easing – while American brands must
remain agile and strategic to mitigate risks,
using any short-term relief to re-engage but
preparing for a potential return of tariffs.
Regardless of your country of origin, a few
themes ring true: diversification, digital
channels, supply chain flexibility, and real-time
adaptation are now paramount for
international success.
WPIC Marketing + Technologies is committed
to guiding global brands through this
landscape with data-driven insights and end-
to-end execution in China and Asia. We hope
this position paper has provided clarity and
confidence as you plan your next moves. The
road may be uncertain, but with the right
strategy, your brand can find certainty in one
thing: the continued enthusiasm of
customers, be it in Shanghai, Singapore, or
Seoul.
20 Succeeding in a Time of Tariffs
For more information, contact:
Joseph Cooke
President, WPIC Marketing + Technologies
@
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