[Global IDT Insights] U.S. Raises China Tariffs to 125% Amid Retaliatory Trade Spat; Temporarily Eases Duties on Other Nations & Others

Editorial Team – [2025] 173 taxmann.com 507 (Article)

1. U.S.

Amid rising global trade tensions, U.S. President Donald Trump escalated the trade dispute with China by imposing a 125% tariff on Chinese imports, following China’s retaliatory 84% tariff on U.S. goods.

In contrast, the U.S. adopted a more lenient approach toward other nations that refrained from retaliating, by temporarily suspending high country-specific tariffs for 90 days and applying a uniform 10% tariff.

2. New Zealand

In an effort to clarify GST treatment for managed investment funds, New Zealand’s Inland Revenue Department issued Interpretation Statement IS 25/05. The statement confirms that fees charged by fund managers for services provided to investors or the fund itself are exempt from GST, as they fall under the financial services exemption. However, outsourced administrative services, such as registry maintenance, fund accounting, and unit pricing, are considered taxable supplies. Additionally, the taxability of investment management services depends on the level of authority granted to third-party managers, requiring a careful assessment of each specific service under the GST framework.

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