US tariff spike hits China's small parcels, squeezing exporters
US tariff hikes on small packages from China triggered a slump in shipments last month, contributing to a huge drop in bilateral trade and roiling
exporters
like
Shein Group Ltd
.
The value of small parcels sent from China to the US fell to just over $1 billion in May, the least since early 2023, according to customs data released Friday. The 40% plunge from the same month last year marks a sharp reversal for a booming trade route, coming just as the US government eliminated a long-standing tariff loophole.
The policy shift is upending the business models of fast-fashion titan Shein and its rival Temu, which relied on the exemption to send goods directly to US customers free of tariffs. It's also squeezing thousands of small merchants who relied on the model as a low-cost entry into the world's largest consumer market.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
Unsold Container Homes in National Capital Region - Prices You Won't Believe!
Shipping Container Homes | Search Ads
Search Now
Undo
'Without the exemption, it would mean tougher business to us, and much fewer options for consumers, and potentially higher prices,' said Wang Yuhao, whose Kunming-based incense company, Shantivale, recently began selling to the US. 'This is a lose-lose situation.'
Bloomberg
For the entrepreneur, the new tariffs and logistical fees of direct shipping now would mean losing $2 on every parcel. To avoid the additional cost, Wang said he has pivoted to bulk shipments to US warehouses, a move that demanded an upfront investment of more than 100,000 yuan ($13,800) for inventory and storage.
Live Events
The source of the disruption is the end of the 'de minimis' rule exemption for Chinese and Hong Kong shipments. Previously, packages valued under $800 could enter the US duty-free. Since May 2, those parcels face tariffs as high as 54% after the Trump administration moved to close what it deemed an unfair trade loophole.
The impact on the largest players was swift. Shein raised US prices on items from dresses to kitchenware ahead of the hike to cover the costs of the higher tariffs, according to data compiled by Bloomberg News. In the week after the tariffs took effect, both Shein and Temu saw double-digit sales declines, an early sign the punitive measures are eroding their popularity.
Even with the drop, the US remained the largest single destination for China's small parcels, the data showed. Malaysia followed by taking more than $700 million worth of such shipments last month.
Globally, small parcel shipments rose 40% in May compared to a year ago, with Belgium, South Korea, Hong Kong and Hungary among other large destinations.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
31 minutes ago
- Mint
How a Mumbai architect rebuilt a vineyard in France's Rhône Valley
On a visit to the Château de Beaucastel in France years ago, the first thing that struck me was how wellintegrated it was with its surroundings, how minimalistic. It is deliberately so. As Charles Perrin, fifth generation co-owner, Château de Beaucastel, explains, 'Beaucastel's identity is rooted in two things: respect for the land and quiet, patient innovation.' The reimagined Château de Beaucastel, which was inaugurated in May after an extensive renovation by Mumbai-based architect Bijoy Jain, is still rooted in that philosophy of sustainability. Château de Beaucastel is the flagship winery of the Perrin family, located in Courthézon in southern Rhône in the appellation of Châteauneuf-du-Pape. The 'new palace of the pope', as the name translates, was France's first wine appellation (which is like a tag or label to identify the region a wine originates from) given at a time when the papal seat moved from Rome to southern France from 1309-77. Famous for their discerning palates and extensive cellars, the popes sought quality and found that the rugged terroir of the region produced extraordinary, powerful wines. Besides their own extensive wine estates that include Beaucastel (since 1909) and La Vieille Ferme, the Perrins have partnered with Brad Pitt to produce super-brands Château Miraval, Champagne Fleur de Miraval and Gardener gin. But Beaucastel remains closest to their hearts. The Perrins' commitment to organic viticulture is well-documented with Jacques Perrin being one of the earliest adopters of organic farming in 1950, and biodynamic viticulture from 1974. As the Perrins' business grew, so did Beaucastel's reputation and it needed a structure that would accommodate the practical requirements of future expansion. So, in 2018, the family announced an international competition to select an architect for the renovation of the Château de Beaucastel winery. They received 1,200 entries from architects of 32 nationalities. In the end, Bijoy Jain of Studio Mumbai was awarded the project. Working with him would be former colleague Louis-Antoine Grégo of Studio Méditérranée, France. 'Grégo was at Studio Mumbai working with us on the renovation of a 16th century convent in Nice, in the south of France.... It seemed a natural progression to make a proposal for Beaucastel with this group who shared in the same sentiments towards the making of things, spaces, materials, landscapes,' says Jain. The key factor for the renewed winery was to synthesise the idea of 'terroir', the French word that encapsulates the environment in which a wine's quality is determined. Perrin's brief to the architects was simple: 'Build with what the earth gives us. Let the elements handle the energy load. Invite dialogue, not ostentation.' The new winery had to co-exist with parts of the old structure, including the original manor house constructed in the 17th century. For Jain, the challenge was to design a structure that would pay homage to the wine itself. Photo: Nicolas Facenda Perrin explains, 'Our earlier chai (the barrel room) was a workhorse but energy-hungry and too small for parcel precision (storing wines from individual plots separately before the final blending). The new wing doubles capacity yet is 80% underground, so from a distance you see vineyards and the ochre-coloured courtyard walls that mirror the old stone.' The russet boundary walls enclose the château that sits amidst the vineyards. It is constructed using the rammed earth technique—known as pisé in French—of compressed red clay mixed with recycled limestone and rubble from old Beaucastel sheds. The walls were compacted layer by layer—the veins and pebbles visible—thus fulfilling Perrin's brief: 'The new winery must grow out of the same soil that nourishes our vines.' Close to 90% of the structure was made from materials found on-site—initially from a pit 50x50 metres and 15m-deep. When the gravel ran out, rubble from old buildings was added—so the new structure was literally 'pressed' from Beaucastel's terroir without any concrete or iron, using construction techniques dating back to ancient Egypt and China. 'It was a mere displacement of landscape. No truck came in or left,' explains Jain. Grégo says, 'We took terroir, which is essentially flat and made it vertical—you can see its veins in the walls. We deconstructed parts of the old buildings that were not required, crushed the concrete into gravel, and added it to the mix.' For Jain, the challenge was to design a structure that would pay homage to the wine itself. He recalls, 'The ground, soil, wind, rain, sun were resources available in the immediacy of the landscape. We needed to use this abundance to create architecture made from the physical environment to provide a quiet resting space for the wine to evolve and achieve its full potential.' This genius loci as Jain calls it, became the vision for Beaucastel. On the energy front, electricity is generated from multiple rooftop solar panels, while cooling comes from the mighty mistral wind of the Rhône Valley, which is channelled through underground galleries via inbuilt wind towers and over an underground cistern holding gallons of water collected from the rooftops. 'Water is the basis of life so the cistern is the project's foundation and acts as a cradle for the wine,' explains Jain. 'The mistral is drawn deep into the ground and circulates above the water's surface, dropping the temperature in the cellar to an even 12 degrees centigrade through the year.' The cooled air is then distributed to the cellar spaces, while the water supplies most of the winery's needs. 'This is an integrated structure free of any mechanical device or industrial material,' says Jain. Winemaking capacity was optimised. Perrin explains, 'We insisted on gravityflow reception, individual fermenters sized to our 13 cépages (a specific blend of grapes) and 70 parcels and circulation paths that future generations can adapt without demolition. The design incorporates 91 small concrete vats, clay jars from Impruneta in Italy and larger wooden tanks that allow each plot and varietal to be vinified separately into the classic Beaucastel blend—an old dream finally realised.' Before the commencement, the Perrin family had taken Jain on a road trip to Burgundy to visit three wineries, the last being the iconic Domaine de la Romanée Conti. 'It was a misty morning at the Domaine, and we stood on a slope in the vineyards, looking down the large stone cross that symbolises the famous winery. In the distance I could see a group of people walking towards it—as if they were on a pilgrimage. It was magical, like a painting. Then we walked deep into the cellars. I remember the walls, a rock with water trickling over its surface, a gravel floor and a barrel serving as a tasting table. Bottles of DRC were opened... This experience changed me, gave me an insight into the potential of wine through the mechanics of taste. The penny dropped,' says Jain. The space is a continuing the dialogue between culture, craft and terroir. Photo: Nicolas Facenda For Grégo, the €16 million project was a huge learning. 'We had never built a winery before like this one. We studied for three years before starting construction— that took another three-and-a-half years. Longer than expected, but this was pioneering work.' Finally, the result was a collaboration of individual skill sets, says Jain, preferring to describe Studio Mumbai as one of many collaborators. Engineer Philippe Clement of French company Batiserf was, in his view, pivotal to the project. 'He ensured the material dissolves into pure architecture, while landscape artist Tom Stuart Smith was intuitive in his interpretation of the gardens, planting indigenous shrubs and trees that needed little water… The builders, masons, carpenters—each one claimed ownership of the project.' For Perrin, the project's results exceeded expectations. 'Visitors tell us the place feels timeless, as though it had always been there. But the renovation is a milestone, not an end.... In the new tasting cloisters, we plan to host artist and scientist residencies—continuing the dialogue between culture, craft and terroir that began when an Indian studio helped a Rhône family re-imagine its home.' Ruma Singh is a Bengaluru-based wine and travel writer.
Time of India
an hour ago
- Time of India
CNG poised for significant growth as India focuses on energy transition: Crisil
The city gas distribution (CGD) sector is at the core of India's energy transition, with compressed natural gas , in particular, poised for significant growth, according to a report by Crisil Intelligence. This projected growth, according to Crisil, will be powered by government thrust, urban mobility demand, and expanding infrastructure. With more than 18,000 CNG stations proposed and 12 crore households unlocked through licensing rounds, the momentum remains strong. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 21st Century Skills Start with Confident Communication Planet Spark Learn More Undo "With the top states continuing to anchor demand, the next phase of growth should come from new geographies, backed by evolving gas-allocation patterns, private investments and aggressive vehicle conversion trends," the Crisil report titled 'City Gas Pulse' read. On the other hand, the competitive intensity is rising, exclusivity periods are closing, and infrastructure gaps are being bridged selectively. Live Events City Gas Pulse provides a sharp, state-wise and player-wise view of CNG demand evolution, infrastructure rollout, investment concentration and market readiness. CNG is becoming the focal point of India's energy mix and the city gas distribution (CGD) sector's growth as the country works towards achieving a 15 per cent share in the primary energy mix for natural gas. According to Crisil, expansion of geographical areas and the increasing demand for cleaner mobility position CNG as a viable and sustainable alternative to traditional fuels. "Regional infrastructure development and readiness play a significant role in enabling wider gas access amid a shift in market focus to electric vehicles," read the report. "CNG remains competitive despite evolving allocation and pricing pressure," it added. India meets a sizable portion of its energy needs through fossil fuels, and various renewable energy sources and relatively cleaner energy sources are seen as an avenue to reduce dependence on conventional sources of power. Green energy for climate mitigation is not just a focus area for India; it has gained momentum globally. At COP26 held in 2021, India committed to an ambitious five-part "Panchamrit" pledge. They included reaching 500 GW of non-fossil electricity capacity, generating half of all energy requirements from renewables, and reducing emissions by 1 billion tonnes by 2030. India as a whole also aims to reduce the emissions intensity of GDP by 45 per cent. Finally, India commits to net-zero emissions by 2070.
Time of India
an hour ago
- Time of India
Best planet-zodiac combinations for career success
I sit at my desk, contemplating the cosmos and its influence on my ambitions, guided by ancient knowledge. According to astrology, your governing planet influences how you approach objectives, manage obligations, and react to stress. Certain planet-zodiac combinations are incredibly effective for career advancement and success because they inherently foster strong work ethics, ambition, and leadership. Saturn - Capricorn Saturn, the planet of structure and discipline, rules Capricorn. Capricorn is one of the most industrious and resolute signs because of this combination. They never back down from a challenge, follow the rules, and thrive on long-term planning. Perfect for jobs in management, government, or finance. Mercury - Virgo Mercury, the planet that rules Virgo, gives them a keen, analytical mind. This, along with Virgo's attention to detail, results in a strong work ethic. Their efficiency, organization, and dependability make them ideal for positions involving editing, data analysis, or research. Aries – Mars Mars gives Aries boldness and drive. Aries people are fast-moving, competitive, and love a challenge. Their energy suits roles in entrepreneurship, sports, sales, or anything that involves quick decisions and action. Venus - Libra Venus, the planet of harmony and beauty, rules Libra. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo Libras excel in professions involving negotiation, law, design, or customer relations because of their diplomatic and gregarious disposition, even though they are not aggressive. Uranus-Aquarius Uranus infuses Aquarius with creativity and vision. They excel in technology, innovation, and special problem-solving domains when paired with their logical mindset. They frequently forge their own route because they adore independence. Sun - Leo Leo gains warmth, confidence, and leadership from the Sun. They thrive in influential fields like management, public speaking, the media, or the creative arts because they are naturally suited for the limelight. Each of these combinations brings a unique strength to the workplace. Understanding your ruling planet can help you tap into your natural talents and align with a career path that matches your energy. Discover everything about astrology at the Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces .
