The new tariffs imposed by the U.S. government on imports from China are causing concern for online shoppers who have grown accustomed to the super cheap prices offered by Chinese-based ecommerce sites like Temu and Shein. These companies have benefited from a loophole in U.S. law that allowed them to import goods worth less than $800 without paying any tariffs. However, a recent presidential order has imposed a 10% tariff on these imports, which could lead to higher prices for consumers.
Shoppers are now weighing how much they will purchase based on the potential price increases. While a few cents may not make a big difference, a significant shipping charge could impact their decision to place an order. Analysts believe that Temu and Shein, being sophisticated companies, will find ways to continue offering competitive prices despite the new tariffs.
New tariffs affect online shopping
However, the increased costs for importing goods from China are likely to be passed on to consumers in some form. The elimination of the “de minimis” exemption means that nearly all packages valued under $800 will now be subject to additional duties and inspections, which could slow down the shipping process.
This could impact availability and inventory levels on Amazon, leading to longer delivery times. According to Juozas Kaziukenas, founder of Marketplace Pulse, price increases on Amazon are unavoidable. Sellers will likely pass on some of the tariff-induced costs to consumers, with expected price hikes ranging from 5% to 10%, depending on the item and its dependency on Chinese imports.
These new policies aim to decrease the United States’ dependency on Chinese goods, but the immediate consequence for consumers is expected to be higher prices and longer shipping times. As shoppers brace for increased costs, it is clear that the commerce dynamics on these popular ecommerce sites are set for a notable shift.
Image Credits: Photo by Paul Teysen on Unsplash
