Sticking to High Tariffs: US Policies Pose Challenges for Temu and Shein
stricter US customs regulations cause challenges for online retailers Temu and Shein
Insight: Amidst easing trade tensions, Donald Trump continues to pose hurdles for Chinese online retailers like Temu and Shein in the US. Despite a decrease in the overall tariff rate, the $100 minimum fee per package persists.
Upon the temporary easing of trade hostilities, Chinese online retailers previously enjoyed an advantage from duty-free shipments valued under $800. That favorable treatment, however, came to an end on May 1 when a 120% duty fee was introduced, accompanied by a minimum fee of $100 for each package.
US President Trump has since reduced the tariff percentage to approximately 54%, yet the $100 minimum fee remains unfazed and will rise to $200 come June 1, as per the President's decree.
Economy Hope for Germany and EU: China and USA Drastically Reduce Tariffs The increased costs on American consumers will be a consequence of these changes. Optimistically, for online retailers, it may be more beneficial to transport items to US warehouses and sell from there, as the usual tariff for Chinese goods has been provisionally adjusted to 30% as part of the agreement with Beijing.
Domestic US retailers have long pointed a finger at the so-called de minimis regulation for duty-free shipments worth less than $800 as an unfair edge for their Chinese counterparts. This argument, backed by Trump, stated that harmful substances like fentanyl might be smuggled into the country through these shipments. Following the loss of this exemption, Chinese online retailers have been forced to hike their prices in the US.
References: ntv.de, jog/dpa | China | USA | Donald Trump | Trade Conflicts | Tariffs
- On the Rise: In recent weeks, Chinese online retailers like Shein and Temu have boosted their prices in the US due to the loss of tariff exemptions.
- On the Ground: The new tariffs may help restore a level playing field for domestic retailers, addressing concerns of an unfair advantage for Chinese imports.
- Looking Ahead: Retailers like Shein and Temu may need to reassess their pricing strategies or supply chains to adapt to the tariff changes, while the long-term impact remains uncertain due to the temporary nature of the reductions.
- The rise in prices by Chinese online retailers like Shein and Temu in the US could be a result of their community policy adjustments, as they grapple with the financial implications of the new tariffs and the elimination of the de minimis regulation.
- The US employment policy may be impacted by the ongoing changes in the tariff policies, especially in online retail industries, as companies struggle to adapt to the increased costs and potential shifts in supply chains due to the new tariffs.
