Advertisement
China’s merchants on Temu, Shein face turmoil after Trump’s tariff reversal
Trump’s return to the White House has added to the challenges faced by cross-border merchants in China
Reading Time:2 minutes
Why you can trust SCMP
1
Iris Dengin Shenzhen
China’s cross-border merchants and logistics service providers are contending with the chaos caused by US President Donald Trump’s back-and-forth tariff policies, as businesses brace for more shocks in an already challenging retail market.
Garments producer and online seller Kenny Li said he tried to keep his cool after Trump earlier this month raised tariffs on Chinese goods by 10 per cent and removed a duty exemption on lower-value packages, only to delay implementing the policies several days later.
“Just let it be – otherwise, what else can be done?” Li said. “We can only wait for the plan to be finalised and actually put in place before knowing for sure how we can deal with the policy changes.”
For now, the mantra is “keep calm and carry on”. Li continued to deliver his goods to the warehouses of e-commerce platforms Temu and Shein, both of which gave him no new instructions on how to cope with new US policies. Logistics procedures and charges remained largely unchanged, he said.
Trump on February 7 signed an executive order postponing new tariffs on lower-value packages from China, stipulating that the “de minimis” exemption will be removed only when the commerce secretary informs him that “adequate systems are in place to fully and expediently process and collect tariff revenue applicable”.
It followed an announcement by the United States Postal Service that it would continue to accept all inbound mail and packages from mainland China and Hong Kong, reversing a decision half a day earlier to suspend such services.
Advertisement