China’s cross-border merchants mull price hikes to offset US tariffs, shipping fees

Chinese merchants face fresh challenges after new US tariffs and the removal of de minimus exemptions

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A US Postal Service employee sorts mail at a processing and distribution centre in Los Angeles. Photo: AFP

Coco Fengin Guangdong,Iris Dengin ShenzhenandWency Chenin Shanghai

Published: 9:08pm, 5 Feb 2025Updated: 10:46pm, 5 Feb 2025

Chinese merchants selling to US customers online are looking to raise prices to offset the new tariffs imposed by the Trump administration and rising shipping costs after the United States Postal Service (USPS) temporarily stopped receiving parcels from mainland China and Hong Kong this week.

A merchant surnamed Gu, who sells on Amazon.com and PDD Holdings-owned Temu, said she received a message from her cargo service provider on Monday that it would charge extra for parcels destined for the US from Tuesday noon.

She was asked to pay 35 per cent more for textile shipments and 25 per cent more for other merchandise to cover tariffs and customs clearance. Gu said she was discussing with her business partners whether to raise the prices of their products.

Cross-border merchants like Gu face new challenges in selling to American shoppers after US President Donald Trump on Tuesday raised tariffs on Chinese goods by 10 per cent and removed the “de minimis” exemption.

The removal of the de minimis exemption is expected to affect Chinese-backed cross-border e-commerce firms like Shein and Temu. Photo: AFP

The de minimis policy, which allowed small packages worth less than US$800 to enter the US duty-free, played a major role in driving the growth of China’s cross-border e-commerce industry. Nearly half of all packages shipped under de minimis came from China, the US congressional committee on China said in a report in June 2023.