Greater than 1 billion parcels from China entered the US in 2023, with Shein and Temu doubtless accounting for a mixed 30 per cent of that quantity, in line with a report by the US congressional committee on China.
Round 1.36 billion Chinese language shipments entered the nation in 2024, US Customs and Border Safety knowledge confirmed.
Analysts say the transfer shall be particularly disruptive for smaller sellers working by Chinese language e-commerce platforms, which goal US buyers and shoppers straight – a enterprise mannequin counting on ultra-fast, low-cost transport to undercut US retailers.
Underneath the brand new guidelines, such merchandise face not solely tariffs but additionally customs delays, compliance hurdles, and better logistics prices.
“It is going to positively gradual the (parcel screening) course of and exporters will in all probability see their packages being stopped on the border for investigation for a really very long time,” mentioned Guo. “This might be a much bigger headache which they beforehand didn’t actually should hassle with.”
Chinese language firms already seeing “razor-thin” revenue margins would have little room to soak up extra prices, in line with EIU’s Su, who provides that the brand new tariffs will “in the end doubtless be handed on to US shoppers partially after a part of the associated fee is absorbed by US retailers”.
Through the years, some Chinese language producers have been rerouting shipments by Southeast Asian international locations to avoid US tariffs – leveraging free commerce agreements and built-in manufacturing chains throughout international locations like Vietnam, Cambodia, Thailand and Malaysia.
Nonetheless, that escape route will doubtless now not be a “cost-effective various” as nations within the area additionally face hefty US tariffs now hitting each ends of this provide chain.
“Rerouting Chinese language exports could fail in international locations like Vietnam, the place exports had been beforehand rerouted partly, and are (now) additionally being hit arduous,” mentioned Josef Gregory Mahoney, professor of politics and worldwide relations at East China Regular College.
Chinese language companies will doubtless pivot to new markets, within the months forward, Mahoney added.
