The tariff policy that Donald Trump has imposed on various countries and territories such as Canada, China, among others, has logically caused the rise in prices of a large number of products, articles, and services coming from these countries.
However, in the case of China, these series of increases would also affect e-commerce through two of its main companies, Shein and Temu, which have become one of the great pillars that the Asian nation offers to the world, with the United States being one of its largest importers.
According to the report from the United States Congress, from June 2023, just this pair of companies represented more than 30% of the packages that entered the country under this type of commerce.
Therefore, more and more people are wondering, how much will the increase be on the products of this pair of platforms and when will they be officially applied?
Temu and Shein seek to survive the trade war between the United States and China
Before the series of measures established by the United States government, this pair of platforms managed to exponentially position themselves in the American market thanks to a particular factor: the de minimis exemption.
This concept refers to a provision established in Section 321 of the 1930 Tariff Act in the United States, which was designed to simplify the import process of low-value goods into the North American country.
In short, this regulation allowed imported goods with a value of less than $800 per day to be exempt from paying taxes or tariffs like other higher-value products.
However, after the declaration signed by the President of the United States regarding the implementation of tariffs on China, the de minimis exemption became non-applicable, causing these types of products to be some of the most affected.
For platforms like Shein and Temu, these types of trade changes signify a big blow to their operations in the United States, which could result in price increases as well as a greater slowdown in their delivery processes: “The de minimis was key for them to offer low prices and ensure quick shipments,” stated Marketplace Pulse CEO, Jouzas Kaziukenas, to Reuters.
Amazon Haul, the big beneficiary of the tariffs
In the case of Amazon Haul, a division of the same e-commerce platform that aims to compete with this kind of companies in the sale of ultra-cheap products, these increases could bring them benefits.
This would also give Amazon Haul the opportunity to compete with this pair of companies in quality, shipping, and, mainly, price. However, so far, none of the Asian companies have officially announced price increases on their products or shipping processes.
*This article has been automatically translated using artificial intelligence