US weighs ending tariff exemption for small parcels from Macau??
The United States is considering removing the tariff exemption for small parcels from Macau, a move that could further strain the citys economy amid ongoing trade tensions. According to media reports, the potential policy shift comes as US President Donald Trump expands tariffs on Chinese exports, with Macau likely to be affected given its economic ties to mainland China.
Currently, small parcels from specific regions, including Macau, enjoy duty-free entry into the US, benefiting businesses reliant on cross-border e-commerce. If the exemption is eliminated, shipments from Macau could face new tariffs, increasing costs for exporters and dampening demand from US consumers.
This development coincides with a weaker growth outlook for Macaus 바카라 industry. Citigroup recently downgraded its 2025 gross gaming revenue (GGR) forecast from 7 percent to 3 percent, citing disappointing Chinese New Year (CNY) gaming activity and economic uncertainty stemming from US-China trade disputes. Analysts noted that high-net-worth visitors from China, many of whom are business owners in export sectors, are facing financial pressure, affecting their spending habits in Macau.
Trade tensions and Macaus economic risks
Trumps latest tariff measures impose a 10 percent baseline duty on all imports, with China facing an additional 34 percent levy. This follows earlier tariffs on Chinese goods, bringing the total additional charge to 54 percent. The White House framed the tariffs as a move to protect US industries, but China has condemned them as harmful to global trade.
The removal of Macaus tariff exemption would further complicate economic conditions. While the citys economy is largely driven by tourism and gaming, cross-border trade plays a role in supporting local businesses. A tariff on small parcels would increase costs for Macau-based merchants shipping to the US, potentially discouraging e-commerce activity.
The prospect of additional trade barriers has also heightened concerns over Macaus reliance on high-spending mainland visitors. The region has been grappling with a decline in VIP gaming revenue as economic pressures and geopolitical uncertainties weigh on consumer sentiment. Analysts warn that if the trade dispute escalates, it could lead to weaker spending and fewer trips to Macaus 바카라s.??
Chinas response and Macaus outlook
On Thursday, China said in a statement that it firmly opposes the new US tariffs on its exports. According to a Macau Business report, an official from Beijing called for a dialogue to resolve the dispute.
Macaus economic resilience will be tested as external pressures mount. The potential removal of the small parcel exemption could be another headwind for businesses already navigating US-China trade tensions. Meanwhile, the citys 바카라 sector faces an uncertain year, with analysts predicting a 1 percent year-on-year decline in the first half of 2025 GGR.?
