Friday, the United States finished a price exemption for small plots, some retailers have ceased to sell to WE Customers while others are looking for temporary bypass solutions in the hope that the rate rate can be reduced.
The abolition of “MINMIS” – the franchise processing of the rights of electronic trade packages worth less than $ 800 – for products from China and Hong Kong exhibits these goods at 145% tariffs on most Chinese goods after the decision of US President Donald Trump last month. The movement upset the world trade and sparked reprisals from Beijing.
The British Beauty Products Space NK retailer has paused for electronic commerce orders and shipping in the United States “to prevent incorrect or additional costs to be applied to our customers,” the company announced on Wednesday.
It is not alone. Agreement, a company based in Vancouver which sells support and underwear made in China, customers told an Instagram position that it would no longer be shipped to the United States due to prices, saying that it would resume once there would be a clarity.
“We go from zero to 145%, which is really untenable for businesses and untenable for customers,” said Cindy Allen, CEO of Trade Force Multiplier, a world commercial firm.
“I saw a lot of small and medium-sized companies to choose to get out of the market completely,” she added.
Import costs may vary depending on the shipping methods. For goods managed by the American postal service, the price will be 120% of their value, or $ 100 per package. The amount is due, opens a new tab to increase at $ 200 in June, according to customs implementation directives and American border protection.
Players wishing to continue accessing the American market are forced to browse their price labels.
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Oh Polly, a British clothing retailer, has increased prices in the United States by 20% compared to his other markets, and may have to consider new price increases due to higher rates, said general manager Mike Branney.
The rapid fashion giant based in Singapore, Shein sought to reassure customers in an article on his American Instagram account on Thursday, saying: “Some products can be assessed differently than before, but the majority of our collections remain as affordable as ever.” Shein sells clothes mainly made in China, and the United States is its largest market.
TEMU, the international branch of the Chinese electronic commerce giant PDD Holdings (PDD.O), opens a new tab, in good place products already in American warehouses on its website, labeled “ local ” and an informed pop-up customer that there would be no import costs for local warehouse items.
“All sales in the United States are now managed by local sellers, with orders filled with the interior of the country,” said TEMU in a statement, adding that its prices for American customers “remain unchanged”.
But the elements imported before the modification of May 2 will eventually run out. Shein and Temu have both reduced their digital advertising expenses in the United States in recent weeks while they were preparing for the change likely to hit their sales.
Shein did not immediately respond to a request for comments.
De Minmimis was initially introduced to smooth online purchases and stimulating international trade, but has become the target of bipartite criticisms because of its role in the facilitation of the smuggling of fentanyl ingredients from China and the supply of an increase in imports of cheap clothes, toys and furniture made in China thanks to online platforms like TEMU, Shein and Amazon.
De Minmimis was also a channel for counterfeit goods. In 2024, minimis expeditions represented 97% of freight crises linked to the violation of intellectual property carried out by customs and border protection.
Without Minmis, goods sellers made in China must provide American customs with more detailed information on how each component of their product is manufactured, an increased administrative burden which, as well as the huge price cost, dissuades small retailers.
The UPS CEO Carol Tome said on Tuesday that many commercial customers of small to medium size of the delivery company are obtaining 100% of their goods from China.
Us Online Marketplace Etsy declared in an opinion to the sellers earlier this month that it facilitated the clarification of the country of origin of their products, because prices are applied according to the place where a good is made rather than where it is sent.
While disturbing electronic commerce, the end of minimis treatment of Chinese products could give a boost to retailers less dependent on electronic commerce or Chinese manufacturing.
The British retailer Fast-Fashion Primark, who sells clothes to American customers only in his stores across the country, and not online, said that he could benefit from the change.
“With the prices that increase this part of the trade, I wonder if some Americans could start returning to shopping centers to find value,” said George Weston, CEO of Primark, Associated British Foods on Tuesday.
—Portation by Helen Reid, Additional Amy Tennery reporting, Lisa Baertlein, James Davey; Edition by Lisa Jucca, Anna Driver and Emelia Sithole-Matarise