The ongoing trade war between the US and China, which began approximately six years ago, has significantly impacted the art and antiquities trade between the two countries. Art professionals from both nations have noted a substantial decrease in sales, exhibitions, and cultural exchanges due to the imposition of tariffs on art.
In 2018, the US introduced a blanket tariff of 25% on a wide range of commodities, including Chinese art and antiquities. Jared Muscato, director of commercial operations at Dietl International, mentioned that although there was a brief suspension of these duties in 2019/2020, Chinese artworks currently face a 7.5% tariff in the US.
China, in response, implemented reciprocal tariffs ranging from 5% to 20% on American artworks in 2019, which stand at 20% for certain art forms such as paintings and sculptures. These tariffs are compounded by China’s 13% VAT and other import duties, which can reach up to 6% depending on the medium.
Both the US and China have different criteria for applying tariffs. The US bases its tariffs on the production location of the artwork, irrespective of the artist’s nationality, while China’s tariffs are determined by the artist’s citizenship, regardless of the artwork’s shipping origin.
The art trade has been further affected by the COVID-19 pandemic and the associated travel restrictions. Jonathan Schwartz, CEO of US-based arts logistics company Atelier 4, observed a noticeable slowdown in shipments to and from Beijing, indicating a dampened interest in Chinese art due to both tariffs and political tensions.
Craig Yee, the founding director of the Beijing and New York gallery Ink Studio, and Mathieu Borysevicz, founder of the Shanghai-based gallery Bank, both highlighted the challenges faced by the art trade due to these tariffs, noting the significant impact on cultural exchange and understanding between the two countries.
Despite the reduction of tariffs from their peak, the financial burden remains high, particularly for high-value art pieces. The situation has not only affected the art market financially but also hindered cultural exchanges, from art to student exchanges, between two of the world’s largest economies. This has led to a loss of mutual understanding and will require time to rebuild.
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