As Trump moves to tax small parcels, some retailers give up on US

Reuters

Thu, May 1, 2025, 10:09 PM 4 min read

LONDON (Reuters) - As the United States ends a tariff exemption for tiny parcels connected Friday, immoderate retailers person stopped selling to U.S. customers portion others are seeking impermanent workarounds successful the anticipation the tariff complaint whitethorn beryllium reduced.

The removal of "de minimis" - duty-free attraction of ecommerce packages worthy little than $800 - for products originating from China and Hong Kong exposes those goods to tariffs of 145% connected astir Chinese goods pursuing U.S. President Donald Trump's determination past month, a determination that upended planetary commercialized and triggered retaliation from Beijing.

British quality products retailer Space NK has paused e-commerce orders and shipping to the U.S. "to debar incorrect oregon further costs being applied to our customers' orders", the institution said successful a announcement connected Wednesday.

It is not alone. Understance, a Vancouver-based institution that sells bras and underwear manufactured successful China, told customers successful an Instagram station that it would nary longer vessel to the United States owed to the tariffs, saying it volition resume erstwhile determination is clarity.

"We're going from zero to 145%, which is truly untenable for companies and untenable for customers," said Cindy Allen, CEO of Trade Force Multiplier, a planetary commercialized consultancy.

"I've seen a batch of tiny to medium-sized businesses conscionable take to exit the marketplace altogether," she added.

Import charges tin alteration depending connected shipment methods. For goods handled by the U.S. Postal Service the tariff volition beryllium 120% of their value, oregon $100 per package. The magnitude is owed to summation to $200 successful June, according to implementation guidance from U.S. Customs and Border Protection.

PRICE HIKES UNDERWAY

Players consenting to proceed to entree the U.S. marketplace are forced to hike their terms tags.

Oh Polly, a British covering retailer, has accrued prices successful the U.S. by 20% compared to its different markets, and whitethorn person to see further terms increases due to the fact that of the higher tariffs, said managing manager Mike Branney.

Singapore-based fast-fashion elephantine Shein sought to reassure customers successful a station connected its U.S. Instagram relationship connected Thursday, saying: "Some products whitethorn beryllium priced otherwise than before, but the bulk of our collections stay arsenic affordable arsenic ever." Shein sells apparel mostly manufactured successful China, and the U.S. is its biggest market.

Temu, the planetary limb of Chinese ecommerce elephantine PDD Holdings, prominently featured products already successful U.S. warehouses connected its website, labelled 'Local', and a pop-up informed customers determination would beryllium nary import charges for section warehouse items.