G7 weighs joint tariffs on low-value Chinese imports amid overcapacity concerns

Group of Seven (G7) nations are in discussions over coordinated tariff measures targeting low-value Chinese imports, as Western economies grow increasingly wary of what they describe as Beijing’s non-market practices and industrial overcapacity.

Canada’s Finance Minister François-Philippe Champagne confirmed that talks are underway among G7 members to address the surge in inexpensive Chinese goods, which are often sold through e-commerce platforms at prices that evade traditional tariffs. Champagne emphasised overcapacity issues and non-market behaviour that he says is distorting global trade.

The initiative follows recent moves by the United States to revoke the so-called de minimis exemption for certain Chinese e-commerce shipments. Under the previous rules, packages valued under $800 could enter the U.S. without incurring duties. The change, championed by Trump, targets popular platforms such as Temu and Shein, which have been accused of exploiting loopholes to flood Western markets with ultra-cheap goods.

European governments are also considering similar measures. France, the UK, and the broader European Union have floated proposals to impose duties or administrative fees on low-value imports, with a focus on re-establishing fair competition for domestic producers and curbing the dominance of Chinese supply chains.

The talks signal a coordinated shift among developed economies to counterbalance China’s trade model, which officials argue is increasingly reliant on state-backed overproduction and aggressive pricing strategies across sectors ranging from solar panels to consumer electronics and textiles.

While concrete action has yet to be finalised, G7 officials suggest that tariffs on small packages could be one of several steps taken to address what they view as a systemic imbalance in global trade flows.

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