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First Post
an hour ago
- Business
- First Post
Trump tariffs hit China hard, 40% drop in small parcel Chinese shipments to US
Chinese exporters are hit hard by US President Trump's tariffs, with a 40% drop in low-value parcel exports to the US in May year-on-year. The reason behind the drop is that Trump's administration plans to charge 54% tariffs on less expensive products read more Chinese exporters are paying the price of the sweeping tariffs introduced by US President Donald Trump. The brunt of the Trump tariffs is significant to the Chinese economy, especially in the parcel industry. According to China's latest customs data, released on Friday, China's exports of low-value parcels to the United States dropped 40 per cent in May year. The data was released by China's General Administration of Customs, ringing alarm bells in Beijing, Bloomberg reported. China's export of small parcels to the US now stands at just over $1 billion, which is the lowest since early 2023. The 40 per cent plunge from the same month last year marked a sharp reversal of the booming trade between the two nations. STORY CONTINUES BELOW THIS AD The Trump tariffs are also affecting 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. Apart from this, the tariffs are squeezing thousands of small merchants who relied on the model as a low-cost entry into the world's largest consumer market. More from Business How Indian fintech startups are driving Malaysia's UPI-like digital payments revolution '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 told Bloomberg. 'This is a lose-lose situation," he added. The demise of the loophole For entrepreneurs, the new tariffs and logistical fees of direct shipping now would mean losing $2 on every parcel. Wang noted that to avoid additional costs, Chinese businesses have moved to bulk shipping to US warehouses. However, even that would require an upfront investment of more than 100,000 yuan ($13,800) for inventory and storage. The reason behind the disruption the parcel industry is facing is the demise of the 'de minimis' rule exemption for Chinese and Hong Kong shipments. Before the Trump tariffs, packages valued under $800 could enter the US duty-free. However, since May 2, even those parcels are facing tariffs as high as 54 per cent. The Trump administration said that the measure was taken to get rid of the unfair loophole that the Chinese companies enjoyed. According to Bloomberg, in the week after the tariffs took effect, both Shein and Temu saw a double-digit sales drop, an early sign the punitive measures were eroding their popularity. However, despite the drop, the US remains the largest single destination for China's small parcels, as per the data released by the Chinese authorities. Malaysia followed by taking more than USD 700 million worth of such shipments last month. Meanwhile, China's small parcel shipments to the world rose 40 per cent in May compared to a year ago, with Belgium, South Korea, Hong Kong and Hungary among other large players. STORY CONTINUES BELOW THIS AD With inputs from agencies.
Time of India
4 hours ago
- Business
- Time of India
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 USD 1 billion in May, the least since early 2023, according to customs data released Friday. The 40 per cent 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. '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.' For the entrepreneur, the new tariffs and logistical fees of direct shipping now would mean losing USD 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 (USD 13,800) for inventory and storage. The source of the disruption is the end of the 'de minimis' rule exemption for Chinese and Hong Kong shipments. Previously, packages valued under USD 800 could enter the US duty-free. Since May 2, those parcels face tariffs as high as 54 per cent 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 USD 700 million worth of such shipments last month. Globally, small parcel shipments rose 40 per cent in May compared to a year ago, with Belgium, South Korea, Hong Kong and Hungary among other large destinations.
Economic Times
7 hours ago
- Business
- Economic Times
US tariff spike hits China's small parcels, squeezing exporters
Bloomberg Live Events 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 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.'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.'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 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 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 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 small parcel shipments rose 40% in May compared to a year ago, with Belgium, South Korea, Hong Kong and Hungary among other large destinations.
Time of India
8 hours ago
- Business
- Time of India
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.
The Star
a day ago
- Business
- The Star
US tariff spike hits China's small parcels, squeezing exporters
FILE PHOTO: Shein logo and the company's web shop are seen in this illustration taken, May 16, 2024. REUTERS/Dado Ruvic/Illustration//File Photo 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. "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.' 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. 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. - Bloomberg
