LONDON (Reuters) – Since the United States ends a tariff exemption for small packages on Friday, some retailers have stopped selling to American customers, while others are looking for temporary solutions in the hope that the rate percentage can be reduced.
The removal of “the minimis” – tax -free treatment of e -commerce packages with a value of less than $ 800 – for products from China and Hong Kong exposes that goods to the tarifs of 145% on most Chinese goods after the decision of the US President Donald Trump last month, a relocation.
British beauty products Retailer Space NK has paused e-commerce orders and shipping to the US “to prevent incorrect or extra costs from being applied to the orders of our customers,” the company said in a message on Wednesday.
It's not alone. Understance, a company that sells bra's and underwear in China, told customers in an Instagram post that it would no longer be sent to the United States because of the rates and says it will resume once there is clarity.
“We go from zero to 145%, which is really untenable for companies and untenable for customers,” said Cindy Allen, CEO of Trade Force Multiplier, a worldwide trade consultancy.
“I have seen many small to medium -sized companies that choose to leave the market completely,” she added.
Import costs can vary depending on shipping methods. For goods treated by the US postal service, the rate is 120% of their value, or $ 100 per package. The amount is due to the rise to $ 200 in June, according to implementation guidance against American customs and border protection.
Price increases are going on
Players who are willing to gain access to the American market are forced to increase their price tags.
Oh Polly, a British clothing store, has increased the prices in the US by 20% compared to its other markets, and may take into account further price increases because of the higher rates, says director Mike Braney.
Fast-Fashion Gigant Shein, based in Singapore, wanted to reassure customers in a post on its US Instagram account on Thursday and say: “Some products may be priced differently than before, but most of our collections remain as affordable as always.” Shein sells clothing that is usually made in China, and the US is the largest market.
Temu, the international arm of the Chinese e-commerce Gigant PDD Holdings, prominent products that are already pronounced on its website in American warehouses, with the label 'Local' and a pop-up informed customers that there are no import costs for local warehouse items.
