**Beijing**: A new 30 per cent levy on shipments and heightened tariffs from the U.S. threaten the viability of Chinese vendors on platforms like Shein and Temu, raising concerns about profit margins, logistical delays, and the broader impact on U.S.-China trade relations.
Chinese vendors operating on e-commerce platforms such as Shein and PDD Holdings Inc.’s Temu are facing significant challenges following recent changes in U.S. trade policy. In particular, the retailers have reported being notified by logistics agents of an additional 30 per cent levy on shipments, which comes in the wake of heightened tariffs imposed by President Donald Trump earlier this week. This announcement, made late Wednesday night, has instigated fears about the sustainability of their already-thin profit margins.
According to a memo seen by Bloomberg, the new levy will need to be paid as a deposit by the vendors, calculated at 30 per cent of the retail value of their goods. The logistics agents will then either return this deposit or require it to be adjusted based on the actual tax charges assessed by U.S. customs. This change is seen as possibly detrimental to many small retailers already navigating a competitive and price-sensitive market.
Significant logistical delays are also a concern for vendors, particularly because of the uncertain clearance times now associated with the more rigorous customs processes. The U.S. Postal Service recently caused confusion by reversing its earlier announcement to suspend certain shipments from China and Hong Kong. Initially, the Postal Service stated it would stop accepting some packages but later clarified that it was collaborating with Customs and Border Protection to facilitate an efficient collection process for the new tariffs, aiming to minimise disruptions in the delivery of goods.
The recent imposition of a 10 per cent tariff on imported goods, coupled with the removal of a prior “de minimis” exemption, which previously allowed small packages valued under US$800 to enter the U.S. duty-free, has caused considerable concern among Chinese retailers. Wang Lun, a sales manager from Guangzhou who sells clothing on Temu, described the rapid changes as “messy” and expressed frustration at the challenges faced in communicating with clients. He mentioned that he feels compelled to accept the new logistics costs despite the financial toll, saying, “We have to work our best to keep customers happy and convince them to stay.”
In a broader context, these tariff adjustments could significantly impact the flow of small parcels into the United States, with analysts from Nomura Holdings estimating that such a change might cut U.S.-China export growth by 1.3 percentage points this year, translating to a 0.2 percentage point decrease in China’s GDP expansion.
Last year, platforms like Shein and Temu facilitated the shipment of approximately US$46 billion in parcels to the U.S. that fell below the $800 threshold, accounting for around 11 per cent of all U.S. imports from China. This model has become particularly essential for Chinese exporters as they navigate a challenging domestic economy.
Andy Guo, founder of Waimaojia, a media platform focused on cross-border e-commerce, remarked on the perilous state of small factories that depend on this model, stating that any suspension of packages could lead to business closures. He noted, “Unless China’s government announces effective measures to fight back, it would be devastating to online platforms like Temu and Shein.”
As the U.S. continues to tighten regulations to manage the flow of goods from China, small retailers are left grappling with operational uncertainties. Vendors like Wang have warned that an immediate suspension of the low-cost logistics options would severely impact their sales, pushing them toward either accepting reduced orders or further slashing prices, diminishing their already fragile profitability. The situation remains fluid as stakeholders in the cross-border e-commerce landscape closely monitor the implications of these evolving policies.
Source: Noah Wire Services
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