Weekly Trade Information-174

Dihydroquercetin (DHQ): Broad Application Prospects Yet Limited Global Output
Dihydroquercetin (DHQ), also known as taxifolin or silymarin taxifolin, is a natural flavonoid compound. It appears as fine crystalline particles or amorphous powder, and is readily soluble in ethanol, acetic acid and boiling water.
As the reduced form of quercetin, DHQ is widely distributed in various plants, including pines, yews, milk thistles, sweetgums, Rosa davurica and grapes, among which Pinaceae plants serve as the primary source. Currently, regions such as Changbai Mountain in China and Siberia in Russia are the main supply bases for raw materials used in DHQ extraction. Boasting a favorable growth environment and high-quality larch trees, Changbai Mountain provides a solid raw material foundation for DHQ production in China.
Endowed with multiple biological activities including antioxidation, anti-inflammation, tissue repair, anti-tumor effects, immune regulation and anti-aging properties, DHQ demonstrates enormous application potential in the fields of biomedicine, food and cosmetics.
Source: New Think Tank Network

Surging Demand for Functional Sweeteners
The global market demand for natural functional sweeteners (e.g., allulose, arabinose) continues to rise steadily. This trend is mainly driven by the tightening of "sugar reduction" regulations overseas and the growing prevalence of healthy eating habits.
Leveraging their cost and technological advantages, Chinese raw material manufacturers have witnessed a notable surge in export inquiries for related products (under HS Codes 2938 and 1702) this week. In particular, beverage and food manufacturers from North America and Europe have shown strong procurement intentions.
（Source: Industry Weekly Report of the China Chamber of Commerce for Import and Export of Foodstuffs, Native Produce and Animal By-Products & Market Monitoring Data from Tridge, a global trade platform）

Rising Demand for Natural Antioxidants in the EU

Driven by the newly adopted clean label food regulations, the EU market has seen a rapid surge in demand for natural antioxidants (e.g., rosemary extract, vitamin E), which are used as alternatives to synthetic preservatives.

Data from international procurement platforms shows that inquiries for related products from European food enterprises have increased by over 25% month-on-month. Major suppliers are concentrated in China and India, and this trend is expected to fuel a new round of growth in exports of relevant raw materials from Asia.

Source: New Regulatory Documents of the EU Official Journal & Procurement Data Analysis from SOMO, an International Trade Platform

Major Positive News: The US Likely to Further Reduce Tariffs

On December 16, 2025, US Treasury Secretary Scott Bessent sent an amicable signal during an interview with Fox Business Network, stating that China "has fulfilled all commitments made during the negotiations so far" and emphasizing that the Trump administration aims to promote the "rebalancing" of China - US trade through cooperation. This is regarded as a positive sign, indicating that Sino - US trade relations have shifted from "confrontation" to "dialogue" in the era of Trump 2.0, which has boosted corporate confidence and received positive feedback from the stock market.

Bessent takes the lead in tariff negotiations, and his remarks reflect the official stance, aiming to stabilize market expectations and avoid trade uncertainties at the end of the year. The US has acknowledged China's fulfillment of commitments in areas such as rare earth control and increased soybean purchases, which can reduce trade risks, promote dialogues in multiple fields including science and technology and energy, stabilize the global supply chain, and lower corporate tax - avoidance costs. However, the core of "rebalancing" remains narrowing the US trade deficit with China. Data shows that from January to September 2025, the US goods trade deficit with China decreased by 25.2% compared with the same period in 2024, and dropped by 51.7% in September alone, showing a significant trend of narrowing.

In terms of tariffs, the possibility of further reduction is high, but the range will be limited and accompanied by conditions. Tariffs have been reduced multiple times in 2025, and the market expects that the probability of the Trump administration further lowering tariffs on China in 2026 will reach 70-80%, with an expected reduction range of 5-10%. Nevertheless, the US Customs and Border Protection stated that since the beginning of 2025, new tariffs have exceeded 2000 billion US dollars, and the total tariff revenue is about 4000 billion US dollars, which is lower than expected. Trump attaches great importance to tariff revenue, claiming that it can be used to repay debts and issue tax rebates to taxpayers. Currently, the US Supreme Court is hearing the legality of Trump's tariff measures, and Trump has frequently made statements, which fully demonstrates his attention and concern. In addition, affected by inflationary pressure, Trump has recently made decisions on tariff exemptions for some products.

Source: Logistics Baba

Breaking News: Price War Imminent

The Southeast Asian market remains generally stable with partial tightening; India, Pakistan and the Middle East show clear upward price expectations; the Europe-Mediterranean market maintains strong momentum; the US routes shift into off-season; and South & Central America lack sufficient support for price hikes.

Southeast Asia: Thailand and Vietnam see stable-to-tight market conditions, while Singapore, Malaysia and Indonesia present distinct divergence.

India & Pakistan: West India leads the price rally, with concentrated pressure expected to release in mid-December.

Europe & Mediterranean: The Mediterranean outperforms Europe; advance planning is required for heavy cargo shipments.

USA & Canada: Peak season fails to materialize, with freight rates falling and the market entering off-season.