Persistent Tariffs Bother Temu and Shein amid Softening US-China Trade Tensions
Enacted U.S. customs regulations pose challenges for retailers Temu and Shein, impacting their import processes.
Connect with us: Facebook | Twitter | Whatsapp | E-Mail | Print | Copy Link
The skirmish in the trade battle is seemingly coming to an end, with China and the USA lowering tariffs yet again. However, a rule that hurdles Chinese online retailers, such as Temu and Shein, persists.
Despite the momentary truce in the trade spat, former President Donald Trump continues to pose challenges for Chinese online retailers like Temu and Shein to operate in the USA. Previously, they enjoyed the benefit of duty-free shipping for goods valued less than $800. However, since early May, a 120% duty has been applicable - with a minimum charge of $100 per package.
Financial Forecast ☀️ U.S. and EU Expect Stronger China-U.S. Trade Relations
Trump has lowered the tariff rate to 54% - but the minimum fee of $100 remains, and it escalates to $200 on June 1, as stated in a decree by the US President.
American consumers often purchase affordable goods from Temu, Shein, and others, making their shopping experience much costlier with the new regulations. To counter this, these online retailers might choose to ship goods to US warehouses and sell them locally, as import goods from China now have a regular tariff of 30%.
Trade organizations have long accused the no-duty rule for deliveries under $800 as an unjust advantage for Chinese competitors over American retailers. Trump justified this move by claiming that this route is also used for smuggling the dangerous drug Fentanyl into the country. The Chinese online retailers have hiked their prices in the USA due to the loss of this exemption in recent weeks.
What's Next:
- Expanded Trade Agreements: Favorable trade agreements between the U.S. and China can lead to a more stable environment for retailers like Temu and Shein.
- Greater Profit Margins: Lower tariffs can result in cost savings for retailers, helping them maintain or increase their profit margins.
- Competitive Products: With reduced tariffs, Temu and Shein may offer more competitive prices, attracting more consumers and strengthening their position in the U.S. market.
In summary, despite the tariff reduction by the U.S., Chinese online retailers like Temu and Shein still face hurdles in their American operations. A favorable trade agreement could provide a more stable and predictable environment for these companies, benefiting both retailers and consumers in the long run.
- The persistent community policy that isolates Chinese online retailers, such as Temu and Shein, remains a concern despite the easing of US-China trade tensions, as Donald Trump's employment policy imposes high duties on their imports.
- Furthermore, the finance sector is closely watching the impact of these tariffs on industry and business, as the continued escalation in costs could potentially undermine the competitive edge of Chinese online retailers in the US market.
