China's Merchants on Temu, Shein Face Tariff Turmoil

China's cross-border merchants and logistics providers are navigating the choppy waters of US President Donald Trump's fluctuating tariff policies, a situation exacerbated by an already challenging retail market, the South China Morning Post reports.

The latest source of uncertainty stems from Trump's decision to raise tariffs on Chinese goods by 10% and eliminate a duty exemption for low-value packages. However, he later reversed course, delaying the implementation of these measures. This back-and-forth approach has left businesses scrambling to adapt.

"Just let it be – otherwise, what else can be done?" said Kenny Li, a garment producer and online seller, to the South China Morning Post. "We can only wait for the plan to be finalised and actually put in place before knowing for sure how we can deal with the policy changes."

For now, Li, who supplies goods to popular e-commerce platforms like Temu and Shein, continues to operate as usual. He reports that neither platform has issued new instructions regarding the handling of US shipments, and logistics procedures and associated costs remain largely unchanged.

The initial tariff announcement prompted the United States Postal Service (USPS) to briefly suspend the acceptance of inbound mail and packages from mainland China and Hong Kong. However, Trump's subsequent executive order reversed this decision, postponing the tariff hike and exemption removal until "adequate systems are in place to fully and expediently process and collect tariff revenue applicable."

Despite the current pause, the unpredictability of US policy is forcing many Chinese merchants to adopt a wait-and-see approach. The fluctuating tariff landscape presents a significant challenge, particularly given the already competitive nature of the global retail market.