{"id":15184,"date":"2025-02-05T13:29:09","date_gmt":"2025-02-05T13:29:09","guid":{"rendered":"http:\/\/torontotribune.ca\/index.php\/2025\/02\/05\/americans-could-face-higher-prices-on-shein-and-temu-heres-why-national\/"},"modified":"2025-02-05T13:29:09","modified_gmt":"2025-02-05T13:29:09","slug":"americans-could-face-higher-prices-on-shein-and-temu-heres-why-national","status":"publish","type":"post","link":"https:\/\/torontotribune.ca\/index.php\/2025\/02\/05\/americans-could-face-higher-prices-on-shein-and-temu-heres-why-national\/","title":{"rendered":"Americans could face higher prices on Shein and Temu. Here\u2019s why – National"},"content":{"rendered":"


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Americans are likely to pay more for products from popular Chinese e-commerce platforms like Shein<\/a> and Temu<\/a> as the U.S. Postal Service<\/a> said it would stop accepting parcels from China<\/a> and Hong Kong.<\/p>\n

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The move was announced Tuesday, coming after the U.S. imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small value parcels to enter the U.S. without paying tax. Canada and Mexico managed to negotiate a month-long reprieve from 25% tariffs threatened by U.S. President Donald Trump.<\/p>\n

It will likely impact online shopping destinations like Shein and Temu, popular with younger shoppers in the U.S. for cheap clothing and other products, usually shipped directly from China.<\/p>\n

Cheap, direct postal service helps these companies keep costs low, as did the \u201cde minimis\u201d exemption that previously allowed shipments to go tax-free if their value is under $800.<\/p>\n

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The temporary suspension by USPS is likely to delay shipments and could mean higher prices in the long term.<\/p>\n

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\n\t\t\t\tWhat exactly did the USPS announce?\t\t\t<\/h2>\n<\/p><\/div>\n

The U.S. Postal Service said in a notice that it would temporarily stop accepting inbound parcels from the China and Hong Kong Posts until further notice.<\/p>\n

Letters and flats \u2014 mail that measures up to 15 inches (38 centimeters) long or 3\/4 inches (1.9 centimeters) thick \u2014 are not affected.<\/p>\n

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The USPS did not state a reason in a brief announcement, but the suspension came after Trump closed the \u201cde minimis\u201d customs exemption this week that allowed shoppers and importers to avoid duties on packages worth below $800.<\/p>\n

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The exemption was removed as part of an executive order to levy a 10% tariff on Chinese goods.<\/p>\n

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U.S. Customs and Border Protection previously stated that it processes an average of over four million \u201cde minimis\u201d imports each week.<\/p>\n

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\n\t\t\t\tWhat is the impact and who is most affected?\t\t\t<\/h2>\n<\/p><\/div>\n

Consumers and companies alike will no longer be able to send parcels to the U.S. from Hong Kong or China.<\/p>\n

This move is likely to impact Chinese e-commerce firms like Shein and Temu, although Shein is likely to be more affected, according to Jacob Cooke, CEO of e-commerce marketing agency WPIC Marketing + Technologies.<\/p>\n

Both companies have significant market share in the U.S.<\/p>\n

\u201cCompared to Temu, Shein relies more heavily on USPS for direct-to-consumer shipping from China, and without this channel, it will have to rely more on private carriers,\u201d said Cooke.<\/p>\n

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\u201cThat will increase logistics costs, which along with the recent scrapping of the de minimis exemption for most products from China, could erode its price advantage.\u201d<\/p>\n