The Art of the Deal: US-China trade friction may hit the art market

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03:02

September is peak season for art auctions, but this year, buyers and sellers are worried. The threat of tariffs is drawing real concern. CGTN's Natalie Pang has more.

Going, going, gone.

For this 900-year-old Chinese porcelain piece, the hammer price is 38 million dollars.

But buyers may have to pay more for Chinese antiques like this.

Under the threat of a US-China trade war, it's not just the manufacturing, the art market has also been caught in the cross-fire.

The US has proposed duties as high as 25 percent on 200-billion dollars' worth of Chinese goods.

On the last page of the targeted list are Chinese paintings and drawings, original sculptures, and antiques more than 100 years old, which means Chinese art coming from anywhere in the world to the US could face extra duties.

For example, this imperial bowl is the cover lot of the summer auction is one of them.

One of the world's largest brokers of art, Sotheby's, has stated its opposition.

KEVIN CHING SOTHEBY'S CEO ASIA "First of all, I would like to say Sotheby's, as a matter of principle, opposes any measures that restrict the free flow of art in the market."

In response to the Trump administration's policies, dozens of US companies including art companies voiced their concern during six days of public hearings.

The decision left museums, collectors, curators, and dealers up in arms.

KEVIN CHING SOTHEBY'S CEO ASIA "This will actually change the decision of the dealers of US who might decide, because the tariff, why should we sell it in America, you know, we will sell elsewhere. They might assign goods to Paris, to London and Hong Kong. That would actually damage the US marke."

Last year, 7.1 billion dollars worth of Chinese art and antiques were sold at auctions across the world, and 408 million dollars came from the US.

Some say the tariffs on Chinese art will only be a drop in the bucket. But for China's rising avant-garde artists, the tariffs could be limiting.

PAUL DONG, CO-FOUNDER & CEO EI ASIA LIMITED "Individually for each Chinese avant-garde artists, in the middle age, or even younger artist, they still tend to look to New York city, Los Angeles, American cities to promote themselves, publicize and also marketize their concept and their art work. And this increase on the tax will absolutely affect their plans."

Details on how the tariff will work are fuzzy.

With the peak season for auctions coming, many buyers eyeing Chinese paintings and antiques may have second thoughts.

KEVIN CHING SOTHEBY'S CEO ASIA "In an ideal world, I think as long as the source of the object, the art is legitimate. I think that should be absolute free flow of art in the market between countries."

The message is clear. In terms of both commerce and cultural exchanges, tariffs can only do damage. Natalie Pang, CGTN.