Americans Could Face Higher Prices On Shein And Temu. Here’s Why - Beritaja

Americans are apt to salary much for products from celebrated Chinese e-commerce platforms for illustration Shein and Temu arsenic the U.S. Postal Service said it would extremity accepting parcels from China and Hong Kong.

The move was announced Tuesday, coming aft the U.S. imposed an further 10% tariff connected Chinese equipment and ended a customs objection that allowed mini worth parcels to participate the U.S. without paying tax. Canada and Mexico managed to discuss a month-long reprieve from 25% tariffs threatened by U.S. President Donald Trump.

It will apt effect online shopping destinations for illustration Shein and Temu, celebrated pinch younger shoppers successful the U.S. for inexpensive clothing and different products, usually shipped straight from China.

Cheap, nonstop postal work helps these companies support costs low, arsenic did the “de minimis” exemption that antecedently allowed shipments to spell tax-free if their worth is nether $800.

The impermanent suspension by USPS is apt to hold shipments and could mean higher prices successful the agelong term.

The U.S. Postal Service said successful a announcement that it would temporarily extremity accepting inbound parcels from the China and Hong Kong Posts until further notice.

Letters and flats — message that measures up to 15 inches (38 centimeters) agelong aliases 3/4 inches (1.9 centimeters) heavy — are not affected.

The USPS did not authorities a logic successful a little announcement, but the suspension came aft Trump closed the “de minimis” customs exemption this week that allowed shoppers and importers to debar duties connected packages worthy beneath $800.

The exemption was removed arsenic portion of an executive bid to levy a 10% tariff connected Chinese goods.

U.S. Customs and Border Protection antecedently stated that it processes an mean of complete 4 cardinal “de minimis” imports each week.

Consumers and companies alike will nary longer beryllium capable to nonstop parcels to the U.S. from Hong Kong aliases China.

This move is apt to effect Chinese e-commerce firms for illustration Shein and Temu, though Shein is apt to beryllium much affected, according to Jacob Cooke, CEO of e-commerce trading agency WPIC Marketing + Technologies.

Both companies person important marketplace stock successful the U.S.

“Compared to Temu, Shein relies much heavy connected USPS for direct-to-consumer shipping from China, and without this channel, it will person to trust much connected backstage carriers,” said Cooke.

“That will summation logistics costs, which on pinch the caller scrapping of the de minimis exemption for about products from China, could erode its value advantage.”

Cooke said Temu operates connected a semi-consignment exemplary and often ships bulk orders to the U.S. earlier fulfilling orders domestically.

“Temu’s exemplary of sourcing low-cost equipment should besides alteration the level to sorb higher logistics costs and stay value competitive,” he said.

Shein and Temu did not instantly comment.

Chinese Foreign Ministry spokesperson Lin Jian said China would return “necessary measures” to protect its companies, and urged the U.S. to “stop politicizing economical and waste and acquisition issues and utilizing them arsenic a tool, and to extremity unreasonably suppressing Chinese companies.”

It is unclear really agelong the USPS suspension will last, but the effort to ace down connected the de minimis excemption seems for illustration a longer-term displacement successful policy, Cooke said.

“Shein and Temu will simply request to trust much connected backstage carriers arsenic a workaround to the USPS suspension,” he said.

In the agelong term, Shein could accelerate its storage description successful the U.S., while Temu tin double down connected its semi-consignment model. By shipping successful bulk to the U.S. and fulfilling orders domestically, logistics costs tin beryllium reduced, Cooke said.

“Shipping successful bulk to the U.S. and fulfilling domestically tin trim logistics costs, but for Shein, this poses a longer-term disruption to their business exemplary which has depended connected quickly processing caller SKUs and shipping them straight to consumers,” Cooke said.

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