The recent imposition of a 10% tariff on all imports from China by US President Donald Trump has stirred confusion and concern among retailers and shipping firms. The move also includes the closure of the "de minimis" duty exemption for package imports valued under US$800. As a result, companies are struggling to navigate the new tariff landscape. Deutsche Post-owned DHL is actively working to avoid disruptions to supply chains and mitigate negative impacts on customers and consumers.
This tariff upheaval has left many in the industry uncertain about future operations. YunExpress has alerted its customers that shipments will now be subject to the new 10% duty, in addition to existing tariffs: a 25% duty on steel and aluminum, and Trump's Section 301 duties ranging from 7.5% to 25% on certain Chinese goods. Similarly, Easyship has warned clients regularly shipping sub-US$800 packages to expect increased scrutiny.
FedEx has responded by suspending its money-back guarantee for US-inbound shipments as of January 29, citing recent regulatory changes. Meanwhile, the US Postal Service (USPS) temporarily halted accepting parcels from China and Hong Kong, a move directly linked to Trump's order ending de minimis shipments from China.
Retailers such as fast-fashion brand Shein and online dollar store Temu have thrived in the US market partly due to the de minimis exemption. Nearly half of all packages shipped under this provision originate from China. The US congressional committee on China noted that two firms, likely including USPS, accounted for over 30% of all packages shipped daily to the US under the de minimis stipulation.
The Trump administration has criticized the de minimis exemption for allegedly facilitating the unscreened entry of fentanyl and its precursor chemicals into the United States. As tensions rise, China has retaliated with its own tariffs targeting US imports of coal, liquefied natural gas, crude oil, and farm equipment. Furthermore, China has initiated an anti-monopoly investigation into Alphabet's Google.
Industry stakeholders are grappling with these abrupt changes. Martin Palmer, co-founder of Hurricane Commerce, expressed the prevailing sentiment:
"We're all running around like headless chickens at this moment in time, trying to second-guess what's going to happen. And in two weeks' time we may be back to normal."
As shipping giants scramble to adapt, Deutsche Post-owned DHL has been proactive in limiting the adverse effects on its clientele. The company aims to ensure continuity in supply chains while minimizing customer inconvenience.
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