How collectors of luxury Chinese art could be hurt by Donald Trump’s trade war with China
There is a strong demand for valuable Chinese art worldwide, especially in the United States, but the US-China trade war and tariffs on art from China could have a detrimental impact on many American art dealers
Works of art are among the goods from China subject to a new set of tariffs from the United States, with effect from September 1. A figure of 10 per cent was announced in early August, but as US President Trump’s trade war has not been resolved, it has now reportedly been increased to 15 per cent.
The concept of collecting art as investment has seen growing popularity and acceptance among the newly rich, which means more disposable income to acquire and invest in art
“Art dealers in the United States are small and mid-sized businesses that operate within the global art market. Many of them specialise in Chinese art, and there are many more that work with living Chinese artists. For these reasons, the imposition of tariffs on art from China will have a detrimental impact on many American art dealers,” the Art Dealers Association of America (ADAA) said in a statement.
“With the tariffs in place, it will be virtually impossible for these businesses to price artwork competitively within the global art market.”
And the group believes it will also affect Chinese artists.
“In addition, galleries are frequently the main vehicles for artists to sell their works, so we are concerned for the even greater number of artists whose livelihoods will be affected by the new tariffs. Regrettably, the tariffs will also stifle the greater cultural exchange that galleries foster,” the ADAA said.
Chinese art has seen great demand as evident by auction prices. Sotheby’s Chinese Works of Art Department has fetched US$36 million for a doucai “chicken cup”, US$22 million for a vase with fruit sprays, and US$26.6 million for a Ru guanyao lobed brush washer, the latter setting a world auction record for Song ceramics.
