TikTok Shop’s US sales plunge...Ford’s China business made $900mn in 2024...Nvidia to take $5.5bn hit with US chip export curbs

TikTok Shop’s US sales plunge

Sales on TikTok’s e-commerce platform in the US have begun to decline, according to estimates by data-tracking platforms and merchants, as new tariffs imposed by US President Donald Trump on Chinese products take a toll on cross-border trade, reports the South China Morning Post. Gross merchandise volume (GMV) on TikTok Shop amounted to $197.4 million last week, a drop from $250.9 million the previous week, after the US first announced “reciprocal” tariffs on Chinese imports, according to EchoTik, a third-party website tracking TikTok sales. TikTok’s GMV reached $290.8 million in the last week of March.

The White House said late on Tuesday that China would face up to 245% tariffs on exports as a result of Beijing’s retaliatory actions. Such a level could significantly disrupt trade between the world’s two largest economies.

TikTok Shop, along with platforms like Shein and Temu, has emerged as a major channel connecting Chinese vendors with US consumers.

Ford’s China business made $900mn in 2024

Ford Motor's China business, including exports from the country, made $900 million in earnings before interest and taxes last year, one of the automaker's top executives said on Wednesday, reports Reuters. John Lawler, Ford's vice chair and former chief financial officer, gave a rare glimpse into the automaker's earnings in the country, where it has been restructuring to stem financial losses.

"When I left China in 2016, it was a digital society back then," Lawler said at an analyst conference, referring to his previous role as head of Ford China. "It's just only advancing. They're leaders in battery technology. They're leaders in development. They have the lowest cost structure in the industry."

Storied carmakers like Ford and General Motors are facing an increasingly harsh climate in the region, as Chinese automakers including BYD and EV giant Tesla dominate sales.

Nvidia to take $5.5bn hit with US chip export curbs

Donald Trump’s administration is clamping down on Nvidia’s ability to sell artificial intelligence chips to China, sending the Silicon Valley giant’s shares sliding and hitting Wall Street tech stocks, reports the Financial Times. Nvidia revealed new US controls on American chipmakers’ sales to China in a late-night regulatory filing on Tuesday, in which it said it expected to take a $5.5 billion earnings hit as a result.

The curbs were subsequently confirmed by the commerce department, marking another escalation in Donald Trump’s trade war with Beijing.

The chipmaker said its H20 chip, which is already tailored to comply with Joe Biden-era export controls that prevent the sale of its most powerful chips in China, would now require a special licence to be sold to Chinese customers.

China smart lawn-mowing robots see export boom

Chinese tech firms are rapidly expanding into the booming global market for smart lawn-mowing robots—especially in Europe—driven by rising demand for intelligent, eco-friendly gardening tools and advances in boundary-free navigation technology, reports Caixin. At the 137th Canton Fair currently underway in Guangzhou, major Chinese tech firms including Ecovacs Robotics Co. Ltd., Ninebot Ltd. and Dreame Technology Co. Ltd. are showcasing robotic lawn mowers.

Dreame, best known as a vacuum robot maker, debuted its first robotic lawn mower in 2023 and has since shipped more than 150,000 units overseas, primarily to European markets. “Demand in Europe is booming,” a Dreame representative said on the opening day of twice-yearly trade fair.

Ecovacs, another leading vacuum robot maker, is also focusing on international sales, reporting tens of thousands of mower units sold since 2023. In its 2024 interim report, the company said overseas revenue and sales volume from robotic mowers rose by 185.9% and 252.1% year-on-year, respectively.

L’Oréal plans major China layoffs

L’Oréal is planning to lay off up to half its travel retail workforce in China, as the French cosmetics giant grapples with prolonged weakness in duty-free sales, reports Caixin. Although the layoffs have not been officially announced, they are expected to affect up to half the team. Some departing employees are reportedly set to receive “n+5” compensation packages—a payout equal to their years of service plus five months’ salary, according to a source close to L’Oréal’s headquarter.

The move reflects growing pressure on L’Oréal’s travel retail operations, which manage product sales through downtown and airport duty-free shops, including those in Hainan’s offshore duty-free stores. According to the company, airport sales alone account for more than 50% of the division’s global sales. While travel retail once contributed around 9% of its L’Oréal’s global revenue, the company has released little performance data since 2019.

L’Oréal, which owns brands such as Maybelline, Lancôme and YSL Beauty, also partners with luxury brands such as Amani, Valentino and Prada for beauty and fragrance lines.

First impact

Sales on TikTok’s e-commerce platform in the US declined to $197.4 million last week, down from $250.9 million the previous week, as US tariffs on Chinese imports began to take effect. The drop comes before the reported ending of the de-minimis exemption—whereby shipments under $800 can enter the US duty free—on May 2, which will likely have a further impact on sales.

There are going to be an increasing number of indicators of tariff impacts in the coming weeks, and we have already sen Shanghai Port virtually grind to a halt last week. It is going to be months before we have the full picture in terms of detailed sales and export numbers, so these kinds of initial and sometimes anecdotal indicators are going to be extremely important to track over the next few weeks.