Trump’s Tariffs Spark Chaos in US-China Shipping Industry

US President Donald Trump’s new tariffs on Chinese imports have already had a significant impact, with shipping companies charging higher import duties and processing fees. American consumers are receiving surprise notices for thousands of dollars, while small business owners are being forced to temporarily halt sending orders to the US.

The 10% tariff on Chinese goods has eliminated a long-standing trade exemption that allowed smaller packages to be sent from China duty-free. This change has thrown the online shopping industry into chaos, with sellers, shipping companies, customs brokers, and consumers struggling to figure out how to absorb the new costs.

Small business owners, such as Leslie Brown of a Canadian secondhand clothing company, are particularly affected. They have been asked to pay thousands of dollars in import duties for items they had previously shipped duty-free. Brown has even resorted to suspending sales due to the high costs.

Shipping companies like UPS and DHL are shouldering the bulk of the burden, with some announcing that they will no longer accept individual packages from China. The owner of a trucking company based in Alberta, Canada, plans to pay for duties out-of-pocket first and charge clients afterwards.

The impact on Chinese low-cost shopping platforms like Shein and Temu is expected to be severe, as well as smaller ecommerce sellers who source products from Chinese manufacturers but ship them out of other countries. Many are being forced to pause shipments or increase prices due to the tariffs.

As the situation continues to unfold, it remains to be seen how long this chaos will last and what long-term effects the new tariffs will have on the US-China shipping industry.

Source: https://www.wired.com/story/tariffs-china-prices-fees-shein-temu