US President Donald Trump’s move to tax small parcels sent shockwaves through ecommerce, with some online retailers giving up on serving the US market over rising tariffs.
The 145% tariff hike on goods from China means that ecommerce companies will face significant price hikes and operational challenges. Some major online retailers have announced plans to stop selling products in the US due to the increased costs.
Shein, a popular chinese ecommerce brand, has attempted to reassure shoppers with an Instagram post assuring them of no impact on delivery times or prices despite the tariff hike.
The move comes as the US tariff exemption for low-value items from China expires on Friday. The decision is part of Trump’s efforts to address trade imbalances and protect domestic industries.
Source: https://www.reuters.com/business/retail-consumer/trump-moves-tax-small-parcels-some-retailers-give-up-us-2025-05-02