As Trump applies new rates, some retailers will no longer send to the United States

As the United States ends its exemption from rates for small plots on Friday, several retailers have already stopped shipments to US clients. Others look for temporary solutions, hoping that the new rate can eventually be checked.

The repeal of the “Minimis” rule, which allowed tax -free treatment for electronic commerce packages below $ 800 from China and Hong Kong, holds most imports to rates of up to 145%. The president of the United States, Donald Trump, announced the change last month, interrupting global electronic commerce and causing Beijing reprisals.

British Beauty Brand Space NK has stopped all electronic commerce orders and shipping to the US. “To prevent incorrect or additional costs from applying to our customers' orders,” said the company on a notice on Wednesday.

Understanding, a Lingerie brand based in Vancouver that it manufactures in China, told customers through Instagram that it would stop sending to the United States due to new rates. The company can resume once the policies become clearer.

“We go from zero to 145%, which is really unsustainable for companies and for customers,” said Cindy Allen, CEO of Global Trade Consultancy Trade Force Multiplier. “I have seen many small to medium companies just choose to get out of the market completely.”

Import positions now vary according to the shipping method. The US Postal Service applies a 120% rate of the value of the article or $ 100 per package. According to the official orientation, customs and border protection of the United States, it plans to increase that rate to $ 200 in June.

On current price trips

Retailers who continue to attend to the US market are adjusting prices to compensate for the impact.

The British clothing label OH Polly has increased prices in the US. UU. In 20% compared to other markets. Managing director Mike Branney said they can follow more increases, depending on how commercial dynamics evolve.

Shein, the Singapore -based fast fashion platform whose goods are largely manufactured in China, were addressed to US customers in an Instagram post on Thursday: “Some products may have a different price than before, but most of our collections remain as affordable as ever.” The United States is still the largest market in Shein.

Temu, the Global Electronic Commerce arm of PDD Holdings, has begun to label items that are already in the US stores. UU. As “local” and inform buyers that these products do not have import positions. However, the actions imported before the deadline of May 2 will eventually be exhausted.

In preparation for change, both Shein and Temu have reduced their digital advertising in the United States, a sign that companies anticipate possible falls in consumer demand. No company responded immediately to comments requests.

Finor offices and electronic commerce offices

Originally created to simplify international purchases, the minimis rule has been subject to bipartisan criticism to allow smuggling of fentanyl ingredients and flood the United States with low -cost Chinese products, Primary Primary, toys and furniture through platforms such as Shein, Temu and Amazon.

According to customs and border protection of the USA. UU.

With the eliminated exemption, retailers must now send detailed documentation to customs specifying the origin of each product component. The increase in administrative burden, together with pronounced tariffs, discourages many smaller companies to serve the US market.

The UPS CEO, Carol Tomé, said that many of the company's small and medium clients obtain all their assets from China, making them especially vulnerable to these changes.

Etsy announced that it would simplify the process so that suppliers indicate their country of origin to help sellers. Tariffs are based where a product is made, not where it is sent.

Physical retailers can gain ground

While policy change has interrupted electronic commerce, it can create opportunities for retailers operating physical stores or depend less on Chinese manufacturing.

Primark, the British Fast Fashion Chain that is sold only through brick and mortar locations in the United States, hopes to benefit. The company does not offer online purchases in the US market.

“With the prices that rise from this part of the trade, I wonder if some Americans could start returning to shopping centers to find value there,” said George Weston, CEO of Associated British Foods, owner of Primark.

Trump justification and broader implications

Trump has defended the end of the exemption of Minimis, qualifying it as “a great scam against our country” and accusing foreign platforms of electronic commerce of exploiting the rule at the expense of the small US companies. “We ended it,” he said during a cabinet meeting on Wednesday. He recognized the probable impact of the consumer, which suggests that children could now have “two dolls instead of 30 wrists”, and those two can cost “a couple more dollars.”

The exemption, presented in 1938, originally allowed American travelers to bring household products for a value of up to $ 5 without declaring them. The threshold increased to $ 800 in 2016. In fiscal year 2024, approximately 1.36 billion shipments entered the country under the rule, more than 90% of the entire load, with approximately 60% of China.

Until Friday, plots below $ 800 face a 120% tax or a fixed rate of $ 100, which increases to $ 200 in June. This adds to the 145% existing rate for most Chinese imports as part of the broader commercial war in the United States and China.

The White House also accuses Chinese sellers to use “deceptive shipping practices” to exploit the escape. American industry associations have pressed for a long time to close it, arguing that he created unfair competition.

Trump also said that the increase in imports of small packages contributed to the entry of dangerous substances such as fentanyl. “These exports play an important role,” he said in an executive order in April.

The CEO of the DHL group, Tobias Meyer, responded cautiously to the changes, pointing out that the impact will depend on how the United States defines the formal customs authorizations versus informal. He added that the formal entry requires additional data points, which could complicate logistics for smaller plots.

Fashionnetwork.com with Reuters and Bloomberg