Americans are likely to pay more for products from popular Chinese electronic commerce platforms like Shein and Temu, because the American postal service said it would stop accepting plots of China and Hong Kong.
This decision was announced Tuesday, to come after the United States imposed an additional 10% rate on Chinese products and ended with a customs exception which allowed the packages at small value to enter the States- United without paying tax. Canada and Mexico have managed to negotiate a one -month stay from 25% tariffs threatened by US President Donald Trump.
This will probably have an impact on online shopping destinations like Shein and Temu, popular with young buyers in the United States for cheap clothes and other products, generally shipped directly from China.
The direct and cheap postal service helps these companies maintain low costs, as well as the exemption of “minimis” which previously allowed shipments to go into tax franchise if their value was less than US $ 800.
The temporary suspension by USPS is likely to delay shipments and could mean higher -term prices.
What exactly the USPS announced?
The American postal service declared in an opinion that he would temporarily cease to accept incoming parcels of the posts of China and Hong Kong until further notice.
Letters and apartments – Mail which measures up to 15 inches (38 centimeters) long or 3/4 inches (1.9 centimeter) of thickness – are not affected.
The USPS has not stated any reason in a brief announcement, but the suspension intervened after Trump closed the exemption from customs of “Minmimis” this week which allowed buyers and importers to avoid rights On plans of a value of less than $ 800.
The exemption was removed as part of an executive decree to collect a 10% price on Chinese products.
Get daily national news
Get the best news of the day, the titles of political, economic and current affairs, delivered in your reception box once a day.
Customs and the protection of American borders have previously declared that it treats on average more than four million imports of “minimis” each week.
What is the impact and which is the most affected?
Consumers and companies will no longer be able to send plots to the United States from Hong Kong or China.
This decision should have an impact on Chinese electronic commerce companies like Shein and Temu, although Shein is probably more affected, according to Jacob Cooke, CEO of the WPIC Marketing + Technologies Electronic Marketing Agency.
Both companies have a significant market share in the United States
“Compared to TEMU, Shein relies more on the USPS for direct shipping to China consumers, and without this channel, it will have to rely more on private carriers,” said Cooke.
“This will increase logistics costs which, with the recent scratch of Minmimis exemption, for most China products, could erode its price advantage.”
Cooke said TEMU operates on a semi-concrete model and often ship loose orders in the United States before carrying out orders at the national level.
“The TEMU model for the supply of low-cost goods should also allow the platform to absorb higher logistics costs and remain competitive on prices,” he said.
Shein and Temu did not immediately comment.
The spokesman for the Chinese Foreign Ministry of Foreign Affairs, Lin Jian, said that China would take “necessary measures” to protect its businesses and urged the United States to “stop politicization of economic and commercial problems and use them as A tool, and to stop unreasonably deleting Chinese companies ”.
What are the possible means for companies to get around the problem?
It is not known how long the USPS suspension will last, but the effort of reprimand on the exemption from Minmis seems to be a longer -term change in policy, said Cooke.
“Shein and Temu will simply have to count more on private carriers as a solution to bypass the USPS suspension,” he said.
In the long term, Shein could accelerate its expansion of warehouse in the United States, while TEMU can double its semi-concrete model. In bulk shipped to the United States and carrying out orders at the national level, logistics costs can be reduced, said Cooke.
“Bulk shipping in the United States and the country’s achievement can reduce logistics costs, but for Shein, this poses a longer-term disturbance of their business model, which depends on the rapid development of new SKUs And shipping directly to consumers, ”said Cooke.
& Copy 2025 the Canadian press
