Popular Chinese brands look to brew success in US despite tariff threats

TARIFF ISSUES

Meanwhile, a record number of Chinese companies are seeking a US stock market listing this year. Thirty-six have already gone public in the US in the first half of 2025.

However, Trump’s tariff war could pose a threat to some of these firms looking to make waves in America, said experts.

Dong noted that firms dealing in goods and merchandise, such as Pop Mart which sells collectable toys and figurines, will confront tariff challenges that will vary depending on where their goods come from.

“All of them are going to be subject to blanket tariffs … But for service-based companies such as Heytea as well as Luckin Coffee, they’re not going to be subject to tariffs. Unless, of course, they import products from China or from their home country of origin,” Dong added.

A week ago, Trump extended a trade truce with China by another 90 days. This prevented US tariffs on Chinese goods from shooting up to 145 per cent, while Chinese tariffs on US goods were set to hit 125 per cent.

For now, the truce has locked in place a 30 per cent tariff on Chinese imports, with Chinese duties on US imports at 10 per cent.

With the agreement set to expire in mid-November, both superpowers will look to come to a longer-term agreement – something many Chinese companies will be counting on as they aim to make the most of deep American pockets.