Trade Policy

Major Foreign Trade Policy Updates in April 2026: A Complete Analysis of Tax Rebate Adjustments, Tariff Changes, and New Cross-Border Regulations

     【Foreign Trade Dynamics】 In April 2026, multiple major economies around the world have intensively introduced new trade regulations, covering export tax rebate adjustments, tariff escalations, stricter customs supervision, and the entry into force of free trade agreements. The scope and depth of these changes' impact on Chinese export enterprises are rarely seen in recent years. Foreign trade professionals need to systematically understand the key policy points and proactively prepare their responses.

I. Major Adjustment to China's Export Tax Rebates: Deep Transformation for PV and Lithium Battery Industries

1.1 Core Policy Content

     Effective April 1, 2026, China has officially canceled export tax rebates for 248 categories of products. The scope is broad, with a core focus on the new energy sector:

   •Photovoltaic (PV) Industry: Export tax rebates canceled for key PV module materials, monocrystalline silicon wafers, solar cells, and related products.

   •Lithium Battery Materials: Export tax rebates canceled for lithium battery cathode materials including lithium hexafluorophosphate, lithium manganese oxide, and graphite materials.

   •Other Products: Rebates for stone products, glass products, ceramic products, and others have been simultaneously canceled.

     Phased Reduction for Battery Products: Battery products adopt a two-step strategy — effective April 1, 2026, the rebate rate is reduced from 9% to 6%; effective January 1, 2027, rebates will be completely canceled. This transitional arrangement provides a window for enterprises to adjust their business strategies.

1.2 Policy Background and Industrial Impact

     Following the reduction of PV product rebate rates from 13% to 9% in December 2024, this marks another significant adjustment to new energy export fiscal and tax policies within just over a year in China. The policy intention is clear: to drive the industry's transformation from low-price "volume growth with price decline" to high-quality "quality growth with stable prices" development.

Short-term Shock and Long-term Benefits Coexist:

   •Drastic Changes in Export Rhythm: A rush of concentrated orders occurred in the first quarter of 2026, with PV module exports reaching 80-100 GW, a year-on-year increase of 30%-60%. Exports will enter an adjustment period starting in the second quarter, as overseas inventories rise and costs increase, cooling buyer purchasing intentions.

   •Cost Transmission Becomes Evident: Eliminating the 9% export rebate is expected to increase PV product costs by RMB 0.06-0.07 per watt. Combined with raw material price increases (silver, aluminum, copper, etc.), total module costs are expected to rise by approximately RMB 0.21-0.27 per watt.

   •Diverging Price Trends: High-efficiency modules (TOPCon, BC modules) benefit from technology premiums and have higher acceptance of price increases, with prices expected to range between RMB 0.85-0.95 per watt; manufacturers relying on low-price competition face order loss pressure.

   •Accelerated Industry Consolidation: The pattern of "the strong grow stronger, the weak exit" is further reinforced. Leading enterprises absorb cost pressure through technology premiums and vertically integrated layouts, while small and medium-sized enterprises face survival tests. Companies relying on export rebates as a primary income source must accelerate their transformation.

1.3 Recommendations for Enterprises

     Restructure Pricing Strategies: Immediately adjust export quotations and negotiate cost-sharing arrangements with overseas customers.

     Upgrade Product Mix: Increase the proportion of high-efficiency modules and high-value-added products, using technology premiums to offset cost pressure.

     Accelerate Overseas Layout: Leading enterprises may consider overseas light-asset production bases to circumvent trade barriers.

     Explore Emerging Markets: Less developed countries (e.g., Africa) still have structural demand for low-power modules. Africa's new PV installations are expected to reach 13.1 GW in 2026, the fastest globally.

II. Mexico's Tariff Escalation: 25%-50% Additional Duties on Chinese Products, Recognized as Trade Barrier by China's MOFCOM

2.1 Policy Details

     Mexico has formally incorporated tariff increases against non-free trade agreement countries including China, India, and South Korea into its General Import and Export Tax Law, effective January 1, 2026. This covers 1,463 tariff lines with additional duties ranging from 25% to 50%. Key products include:

   •Textiles and Apparel: 35%-45%

   •Footwear: 35%

   •Furniture: 35%

   •Toys: 30%

   •Small Household Appliances: 35%

   •Complete Vehicles and EV Parts: Up to 50%

2.2 Policy Evolution Timeline

     Mexico's tariff increases on China are not isolated incidents but represent a continuously strengthening structural policy:

   •April 2024: Temporary 5%-50% import duties imposed on 544 tariff lines.

   •December 2024: Duties increased on 138 apparel tariff lines and 17 textile tariff lines.

   •January 2026: 1,463 tariff lines formally incorporated into the permanent tariff system.

     Notably, Mexico's restrictive measures extend beyond tariffs — in customs supervision, stricter document reviews and inspections of Chinese goods have led to longer clearance times and increased demurrage charges; in certification, the scope of NOM certification applications has expanded, increasing testing costs; in rules of origin, stricter origin audits apply to products containing Chinese-made components.

2.3 Official Response from China

     On March 25, 2026, China's Ministry of Commerce (MOFCOM) formally announced the final conclusion of its investigation into trade and investment barriers caused by Mexico's relevant restrictive measures concerning China, determining that these measures constitute trade and investment barriers. This is the first time China has made such a determination against a major Latin American trading partner, carrying landmark significance.

     On March 31, the State Council issued the Provisions on Ensuring the Security of Industrial and Supply Chains, clarifying that relevant State Council departments may take measures against discriminatory restrictions imposed by foreign countries on China's industrial and supply chains, including prohibiting or restricting the import/export of relevant goods and technologies, and collecting special fees.

2.4 Recommendations for Enterprises

     Re-evaluate Investment in Mexico: The previous strategy of "using Mexico as a gateway to the U.S. market" faces policy uncertainty.

     Strengthen Origin Compliance: Strictly review product origin determinations to avoid being classified as "Chinese-origin" and subject to restrictions.

     Diversify Supply Chains: Consider alternative production bases in Southeast Asia, the Middle East, etc.

     Monitor Subsequent Measures: MOFCOM has the authority to take corresponding countermeasures based on investigation conclusions.

III. Cross-Border E-commerce Parcel Taxes Tightened Globally: Multiple Countries Simultaneously Impose Small-Parcel Taxes

3.1 Summary of Policies by Country

     France (Effective): Effective March 1, 2026, an additional €2 "small parcel tax" per parcel (as a customs handling fee) is imposed on small parcels valued at ≤€150 from non-EU regions, on top of VAT. Private gifts with non-commercial purposes and value ≤€45 are exempt.

     European Union (Effective Soon): Effective July 1, 2026, the EU will eliminate the duty-free threshold for parcels valued under €150 and introduce a fixed €3 duty per consignment. Specific rules include: duties calculated per HS code, not per parcel (e.g., two identical T-shirts + one skirt = €6 duty); VAT continues to apply from the first euro; platforms will be treated as importers and bear customs clearance responsibility; a permanent system will be implemented after 2028, taxing based on HS classification and origin.

     Additionally, the EU is discussing an extra €2 European handling fee, expected to be implemented around November 2026.

     New Zealand (Effective): Effective April 1, 2026, a NZ$2.21 customs handling fee per consignment applies to goods with a declared value ≤NZ$1,000.

     Romania: Has announced a mandatory RON 25 (approx. €5) fee for low-value parcels ≤€150. Originally scheduled for January 1, implementation is still pending.

3.2 Policy Trend Analysis

     The preferential tax treatment for cross-border e-commerce small parcels is rapidly narrowing worldwide. Core driving factors include: sustained pressure from domestic retailers for tax fairness; increasing customs processing costs due to surging cross-border parcel volumes; and government revenue needs.

     The trend is clear: the "duty-free era" is ending, and compliance costs are rising across the board.

3.3 Recommendations for Enterprises

     Recalculate Profit Margins: Incorporate new taxes and fees into pricing models.

     Optimize Logistics Solutions: Consider bulk shipping, overseas warehouse stocking, and other models to reduce per-parcel costs.

     Register for IOSS (for EU): Use the IOSS platform to uniformly remit VAT and small-parcel duties, avoiding poor customer experience from secondary collection at the destination.

     Adjust Upstream Supply Chain: Optimize product mix and increase average order value to dilute the per-parcel tax proportion.

IV. Russia's SPOT System: Pilot in April, Mandatory in July

4.1 Policy Details

     Russia began piloting the SPOT (State System for Prospective Confirmation of Goods Delivery) system on April 1, 2026. This system requires advance declaration of imported goods and generation of a compliance QR code. Key features:

   •Pilot Phase: Launched April 1, 2026

   •Mandatory Implementation: Effective July 1, 2026, goods without a QR code will be prohibited from entry

   •Scope: Goods imported by road from the Eurasian Economic Union (may expand to other transport modes in the future)

   •Core Requirements: Mandatory pre-import registration and advance guarantee deposit

4.2 Policy Significance

     The SPOT system is a key measure for Russia to completely end the era of "gray" imports. Combined with the gradient VAT reform in July 2026 and full mandatory electronic customs declaration, Russia is building a fully traceable import supervision system.

4.3 Recommendations for Enterprises

     Familiarize with the SPOT System: Understand the declaration process and QR code generation mechanism as soon as possible.

     Upgrade Compliance: Ensure precise matching of declared value, documentation, and weight; eliminate under-reporting or misreporting.

     Meet the Timeline: Ensure system integration and internal process adjustments are completed before July 1.

V. UK's Zero Tariff on Offshore Wind Supply Chain: New Export Opportunities

5.1 Policy Details

     The UK government announced that effective April 1, 2026, it has eliminated import tariffs (original rates 2%-6%) on 33 core products of the offshore wind industry supply chain. Covered products include: cables, rotors, low-voltage equipment; wind turbine blades, gearboxes, towers; and generator components.

     Enterprises can obtain tariff relief by using the "Authorised Use System" to prove that imported components are specifically used for wind energy equipment manufacturing.

5.2 Policy Background and Market Opportunities

     The UK is the world's second-largest offshore wind market. In January 2026, the UK's offshore wind auction confirmed 8.4 GW of capacity, unleashing £22 billion in investment — the largest in European history. Reducing import tariffs aims to further lower equipment costs and stimulate clean energy investment.

     For export enterprises in related fields, this is a direct policy dividend window.

5.3 Recommendations for Enterprises

     Proactively Engage UK Buyers: Communicate zero-tariff policy information to win orders.

     Focus on "Authorised Use" Compliance: Complete usage certification as required to ensure tariff benefits.

     Long-term Positioning: The UK's offshore wind market has significant growth potential and can be cultivated as a key market.

VI. EU-Mercosur Free Trade Agreement: Provisional Entry into Force in May, Reshaping Trade Landscape

6.1 Policy Details

     The EU-Mercosur (Southern Common Market) Partnership Agreement and Interim Trade Agreement are expected to provisionally enter into force on May 1, 2026 (without requiring European Parliament approval). Core content includes:

   •91% of goods receive tariff reductions, covering 30% of global economic output and 700 million consumers.

   •Saves EU enterprises approximately €4 billion annually in tariff costs.

   •Opens key channels for South American agricultural products and critical minerals.

6.2 Strategic Significance

     This is one of the world's largest free trade agreements in recent years and will profoundly reshape the transatlantic trade landscape. Against the backdrop of rising US trade protectionism, the EU is intensifying its pursuit of FTAs — in the first three months of 2026 alone, the EU reached FTAs with Mercosur, India, and Australia.

6.3 Recommendations for Enterprises

     Monitor Tariff Reduction Schedules: Track specific timetables for tariff reductions on relevant goods.

     Re-evaluate the South American Market: With lower tariff barriers, the South American market becomes more attractive.

     Optimize Supply Chains: Consider using South America as a springboard for exports to Europe.

VII. Other Noteworthy New Regulations

7.1 Domestic Policies

     Cross-Customs Zone Returns for Cross-Border E-commerce: The General Administration of Customs has promoted the cross-customs zone return model for cross-border e-commerce retail export goods (Mode 9610) nationwide effective April 1, 2026, removing bottlenecks in the returns process.

     Revised Customs Credit Management Measures: Effective April 1, 2026, optimizing enterprise credit ratings, establishing fault-tolerant mechanisms, and creating information rehabilitation mechanisms.

     Registration of Overseas Food Production Enterprises: The Customs Administration Measures for the Registration of Overseas Production Enterprises of Imported Foods (Order No. 280) will take effect on June 1, 2026.

     Feedstock Processing Manual Verification: Manufacturing enterprises must complete verification of the prior year's feedstock processing manuals by April 30 each year.

7.2 International Developments

     EU CBAM Enters Substantive Phase: The European Commission will announce the first quarterly reference price for CBAM certificates on April 7, 2026, moving carbon tariffs from transition to actual cost implementation.

     US Importer Entity Requirements: The US Congress is considering the Foreign Entity Security Accountability Act, which would mandate that importers establish an entity in the US, have employees, pay tariffs through US bank accounts, and raise the minimum continuous import bond amount to $100,000.

     Peru Anti-Dumping Investigation on Chinese Tires: Peru has initiated an anti-dumping investigation on automotive tires originating from China, covering bias tires and radial tires.

     Brazil Increases Import Tariffs: Tariffs increased on 1,252 products, with many previously zero-rated products rising to 7.2%, some to 12.6% or 20%, primarily targeting machinery, industrial equipment, and technology products.

     Indonesia Tightens Foreign Exchange Controls: Bank Indonesia implemented stricter foreign exchange transaction reporting policies effective April 1, reducing the monthly purchase quota without transaction proof for individuals and institutions from $100,000 to $50,000.

     Vietnam's New LED Lighting Regulations: Vietnam has issued national technical regulations on electromagnetic safety and compatibility for LED lighting products, requiring CR certification marks for customs clearance.

VIII. Summary of Recommendations for Enterprises

8.1 Responding to Export Rebate Adjustments

     Immediately adjust pricing strategies for PV and lithium battery products; negotiate cost sharing with customers.

Accelerate product upgrades to offset rebate elimination through technology premiums.

     Explore structural market opportunities such as less developed countries.

8.2 Responding to Tariff Barriers

     Mexico market: Re-evaluate supply chain and strengthen origin compliance reviews.

     Closely monitor MOFCOM's subsequent countermeasures.

     Latin American markets (Brazil, Peru, etc.): Understand tariff and anti-dumping dynamics in advance.

8.3 Responding to Cross-Border E-commerce Changes

     Recalculate tax and fee costs for each target market; adjust pricing promptly.

     Expedite IOSS registration for the EU to ensure system integration before July 1.

     Optimize logistics solutions; use overseas warehousing to reduce per-parcel tax impact.

8.4 Responding to Russia Trade Requirements

     Monitor SPOT system pilot dynamics from April onward.

     Complete system integration and internal process adjustments before July 1.

     Ensure precise matching of declared data, value, and weight.

8.5 Seizing Emerging Opportunities

     UK offshore wind zero tariffs: Exporters of related products can proactively engage UK buyers.

     EU-Mercosur FTA: Monitor tariff reduction schedules and re-evaluate South American market positioning.

     Conclusion: The foreign trade policy updates in April 2026 exhibit characteristics of "parallel developments and deep adjustments" — domestic rebate policies are driving industrial upgrading, multiple countries' tariff barriers are raising trade costs, cross-border e-commerce tax preferences are accelerating their phase-out, while new FTAs are opening new market spaces. Export enterprises must strike a precise balance between "optimizing existing operations" and "pursuing new growth" to seize opportunities amid these changes.

     Sources: Ministry of Finance, State Taxation Administration, General Administration of Customs, Ministry of Commerce, People's Daily, China Energy News, People's Daily Online, Customs Lawyer Network, Fujian Provincial Department of Commerce, Jiaxing Municipal Bureau of Commerce, Pepeliaev Group, UKP Worldwide, and others. Policies are time-sensitive; please refer to official updates for the most current information.