The United States announced a 10% tariff increase on Chinese goods. Will the logistics costs of cross-border e-commerce rise sharply?

The United States announced a 10% tariff increase on Chinese goods. Will the logistics costs of cross-border e-commerce rise sharply?

King James II

My C position

US President Trump signed an executive order on the 1st to impose a 10% tariff on goods imported from China.

Can anyone tell me whether the tariff is collected directly by shipping or by Amazon?
After the policy is released, will there be an overall price increase trend in the market?



"Wonderful Reply"


Anonymous user

Agree from: ljb555, Jiang Xiaobai 2020, Juncheng Night Rain

There is definitely an impact, but there is a saying that goes, there is no bad market, only bad products. The requirements for operators have definitely increased.

In addition to tariff barriers, there are also non-tariff barriers.

However, I personally think that the biggest obstacle for cross-border e-commerce is still the product itself. There is a huge difference in the expectations of Chinese and American consumers for product and service quality. Unless the price difference is particularly large, I am very worried about the product quality control of cross-border e-commerce.

However, I am not saying that products whose quality is not as good as the average in the US market have no chance. I am only talking about Amazon. The quality of products on Amazon is also uneven.

If you are purely looking for cheap products, Temu might be better than Amazon?

In short, you always need to position your product and find your target consumers. General talk is meaningless in business. The cross-border e-commerce market is not a blue ocean. (Although there are many unscrupulous advertisements boasting about it) But no matter how bad the market is, there are always opportunities. The definition of the so-called blue ocean is often just a feeling. Emerging markets face many risks that traditional markets do not have.

In fact, logistics may be the biggest obstacle. In the price composition of many light industrial products, logistics costs are very high. Tariffs do not account for a high proportion.

The situation may only be reduced after logistics automation. However, if we look at the dock workers' strike, one of their demands is to stop dock automation.


Anonymous user

Agree with: Kowloon City, GGGGGdragon, Little Swallow in Flowery Clothes, device, 4-yuan Jasmine Honey Tea

Receiving notification from logistics has a great impact on self-delivery.
Important notice on the tariff adjustment to the United States

Due to the executive order issued by the US President, for goods shipped from China to the United States, flights departing before 12:00 on February 4, 2025 (China time) can normally declare through T86 customs clearance and enjoy the duty-free policy within 800 US dollars; flights departing after 12:00 on February 4 will not be applicable to the original T86 customs clearance mode. The new customs clearance mode will generate corresponding tariffs, and all products will be subject to a 10% tariff on the basis of the original tax rate, and the original duty-free policy below 800 US dollars will be completely cancelled. The final tariffs for various products range from 10-60% or more.


To ensure uninterrupted service, our company has decided to charge a comprehensive tariff of 35% of the declared value of the package for Yanwen Express, tracking, registered mail and other products to the United States for textiles and clothing, and 25% of the declared value of the package for products other than textiles and clothing, starting from flights departing after 12:00 on February 4. This tariff includes tariffs and advance payment service fees. Please also declare the name and declared value of the goods truthfully. Our company is not responsible for any customs detention, delays, additional taxes and additional fines caused by the revaluation of the US Customs. The above notice will take effect immediately. Our company will add this tariff fee to the bill. Please be informed and make timely adjustments to the plan.

Enjoychris • Guangzhou • 1 day ago

@九龙城: Is it a big impact? 25-35% of the declared value is charged, which means if you declare $5, you have to pay an extra $1.25-1.75 in tariffs per ticket.


Ming Dynasty Cavalry • Pingdingshan • 1 day ago

@九龙城: It should be the declared value*(25%+10%)


Ming Dynasty Cavalry • Pingdingshan • 1 day ago

@Enjoychris: I charged 5*10%=0.5 more.


Melodies • Shenzhen • 1 day ago

US Postal Service: Effective immediately, it will stop accepting packages from mainland China and Hong Kong


Kiki20201231 • Shenzhen • 1 day ago

Can I still ship via FBA through the US tax-inclusive channel?


kuhai666 • Zhengzhou • 1 day ago

The same goes for FBA. What kind of logic is this?


Enjoychris • Guangzhou • 8 hours ago

@明朝骑兵: No, it is the 25-35% comprehensive tariff that is directly declared. Yanwen collects it for you. You declare 10 dollars, and they charge you 2.5-3.5 dollars. If you declare 1 dollar, they are afraid of low declaration inspection. I don't know how strict it is. Low declaration inspection basically confirms it.



essenzus

Agree with: Little Swallow in Flowery Clothes, MoeMore

Yanwen has notified that small direct mail parcels below USD 800 will no longer be tax-free as per T86, and will be subject to a 25-35% tariff.

"Due to the executive order issued by the US President, for goods shipped from China to the United States, flights departing before 12:00 on February 4, 2025 (China time) can normally pass the T86 customs clearance declaration and enjoy the tax-free policy within 800 US dollars; flights departing after 12:00 on February 4 will not be subject to the original T86 customs clearance mode. The new customs clearance mode will generate corresponding tariffs. All products will be subject to a 10% tariff on the basis of the original tax rate, and the original tax-free policy below 800 US dollars will be completely cancelled. The final tariffs for various products range from 10-60% or more.


To ensure uninterrupted service, we have decided to charge a comprehensive tariff of 35% of the declared value of the package for Yanwen Express, tracking, registered mail and other products to the United States for textiles and clothing, and 25% of the declared value of the package for products other than textiles and clothing, starting from flights departing after 12:00 on February 4. This tariff includes tariffs and prepaid service fees. Please declare the product name and declared value truthfully. We are not responsible for any customs detention, delays, additional taxes and additional fines caused by the revaluation of the US Customs. The above notice will take effect immediately. Our company will add this tariff fee to the bill. Please be informed and make timely adjustments to the plan. "


Hollow like a dead tree in a dream

It will take a month to see the impact.

FBA had all its goods replenished before the New Year, and now they are either floating on the sea or clearing out FBA inventory. If anyone wants to raise prices, it will be after the New Year's batch of goods arrives at the warehouse and is cleared out.
FBM should be much more sensitive. If they find that the price is wrong after two or three days of posting, they will start to adjust the price (there will never be a company that is so slow that it will report next month).

It seems that the impact on high-priced and high-quality sellers will not be too great. A slight price adjustment of high-priced products to offset the tariffs or a drop in profits within a controllable range will be acceptable. Low-priced products will be a bit uncomfortable. The profits are already small and taxes and transportation costs are added. If the policy remains unchanged for a long time, it is estimated that a group of American sellers will be screened out;


From the perspective of the entire market, everyone's costs are rising, and those with price advantages will still maintain their price advantages, because everyone will adjust their prices. I won't talk about Wu Sangui taking advantage of the opportunity.



SCZ

Agree with: Little Swallow in Flowery Clothes, GGGGGdragon

After reading so many answers about the panic over the tariff, I personally think it is unnecessary. It is not like we have never experienced Trump’s term. On the contrary, his last term was the golden age of Amazon. In 2017, Trump increased the tariff by an astonishing 25%. If the tariff for a category was originally 2%, it would be 27% after the increase!!! However, we FBA sellers have always been cleared and tax-inclusive. As long as this path is still open, there is no need to worry.


The first impact of this tax increase is on compliant traditional foreign trade, followed by TEMU or FBM sellers. Competitors’ costs have increased.



Anonymous user

Agree with: Shooting the Eagle with a Bow, Wang Fuzi

This is collected by the freight forwarder. This has a greater impact on traditional B2B and a smaller impact on cross-border B2C. Moreover, we can go with tax-inclusive, and the tax-inclusive price should not increase too much. If we cannot go with tax-inclusive, then we will do the tax ourselves. If we do the tax ourselves, we can declare a lower amount, but B2B, which has more full containers, cannot avoid this impact (purchase documents must be provided, etc.). Finally, the possibility of further increase is not high, and now Trump’s tariffs on Canada and Mexico will be postponed for one month.

c742718079 • Wenzhou • 1 day ago

I just received a message from Yanwen this afternoon. For B2C small packages, a tariff of 25%-35% will be charged on the declared amount. This is for Yanwen because it is Yanwen that pays these fees on behalf of the customer.



Anonymous user

I went to TEMU to check out the products in my category. The prices have increased a lot, especially those that were previously sold at bargain prices. The price increase is not small. It should be greatly affected by the cancellation of tax exemption.

However, we did not feel the traffic returning, which may be completely different from what everyone imagined. TEMU has cultivated consumers' shopping habits.

I talked to the people working on TEMU and they also said they were not affected. The most worried people were the people working on Amazon.



It's Lu Qi, not Big D

The tax exemption policy for packages under 800 USD has been cancelled. The tariffs generated by the total value of the package must be paid according to actual expenses. An additional 25-35% tariff will be levied according to the category of goods.


Suppose you have a shipment of goods to be sent by express. Let's not talk about the cost of the goods. The total freight is about 6,000. The total invoice amount is 800 dollars. The tariff is 35%. That means you have to pay an additional tax of about 2,000 RMB.

kuhai666 • Zhengzhou • 1 day ago

You calculated it wrong. You have to add the shipping cost. It should be 11600*0.35



Anonymous user

Temu and shein will be more affected because the cost will increase a lot, especially the cancellation of tax exemption for packages under US$800, which will also lengthen the customs clearance time. These two platforms occupy the market by relying on price advantages. If there is no price advantage, the model of occupying the market by price cannot continue, which means that the platform needs to change its model.



Big face, big heart, love to toss

Agree from: lalalandhk

1. For small parcel express delivery, import tariffs must be paid directly according to the category. Without exemption, the cost increase will be greater;
2. For sea transportation, most of the time, the goods are delivered to the freight forwarder who will do the consolidation of the whole container and the customs clearance at the destination port (including tax), which will lead to the increase of surcharges or directly add a little on the basis of the sea transportation price;



GGGGGdragon

Agree with: N2N1Go, Little Swallow in Flowery Clothes, Doubendou Soy Milk, Aoaoaouu, device more »

The impact on TEMU is greater, but not so much on Amazon. Although the motivation of the US is bad, the result may be good. If the market allows TEMU capital to continue, the platform for high-quality products will gradually decline, and we Amazon high-quality sellers will be finished. The market needs some changes, and changes bring opportunities.

Plant a tree • Ganzhou • 1 day ago

From this perspective, the impact on Amazon's low-price mall is quite large. Will Amazon's low-price mall die?


It's Lu Qi, not Big D • Dongguan • 1 day ago

It is not to say that there is no impact on Amazon. In addition to the 10% tariff, the tax exemption policy for items under $800 has also been cancelled. The taxes incurred when sending small packages by air express to Amazon must be paid on a real-time basis.


It's Lu Qi, not Big D • Dongguan • 1 day ago

This policy is obviously aimed at Xiyin and Temu, but it also has a critical impact on Amazon sellers in the clothing category, because a large number of sellers in the clothing category also want to use the fast channel.


kuhai666 • Zhengzhou • 1 day ago

What kind of logic is this? It should be low or low, and it has nothing to do with tariffs; raising tariffs will hurt all Chinese sellers and buyers


GGGGGdragon • Shenzhen • 23 hours ago

@kuhai666: From the perspective of market competition ecology, TEMU's involutionary low-price competition will only lead to bad money driving out good money, and the final result is that the market will be like Pinduoduo in China, and all other platforms will not survive. For boutique sellers doing FBA, a slight price increase can offset this part of the tax, just like in Europe, as long as the market ecology is normal, even if the 20% VAT tax is added, many people can still survive.


GGGGGdragon • Shenzhen • 23 hours ago

@是吕奇不是大D: Yes, it will definitely have an impact on Amazon FBA sellers, but compared with the harm of TEMU to the entire market consumption atmosphere, this 10% tariff is nothing.


kuhai666 • Zhengzhou • 23 hours ago

@GGGGGdragon: A 20% tariff increase, does it increase your costs and risks? You didn't hit the point


EJHANBAOD • Zhejiang • 9 hours ago

@kuhai666: The cost risk is higher, but after the tariff increase, the sellers competing with you are still the same sellers. For high-priced and high-quality sellers, the impact is not so great, but for low-priced sellers, the impact is huge. This is what the previous poster said. Of course, there is a blow from the tariff increase, but we can see other opportunities from it.


kuhai666 • Fuzhou • 9 hours ago

@EJHANBAOD: temu can't handle the 20% tax in Europe; the sellers will suffer from the tariffs


Hollow like a dead tree in a dream • Suzhou • 5 hours ago

@kuhai666: It does screen out a group of sellers who only sell at low prices, and raises some cross-border barriers, but it does not make much difference to high-quality and high-priced sellers. It can even help them get rid of some low-quality competitors. They just need to raise the selling price a little to offset this part of the tariff. As for low-priced and low-quality sellers like Temu, it depends on the size of the sellers themselves.


asbkkt • Shenzhen • 1 hour ago

@GGGGGdragon: pdd didn't make other platforms unable to survive, he just ate up some of the users


OCEANNNNN • Dongguan • 20 minutes ago

@GGGGGdragon: Clothing has a 25% tariff, which was circumvented by using T86 before. Now with the addition of 10%, it is 35%. The problem is that the customs clearance time will definitely be longer.



Anonymous user

Tariffs are definitely collected by the US Customs. The impact on Amazon FBA sellers is mainly at the time of entry, when they need to pay more tariffs, but at present, they are basically all tax-inclusive, and the low price is originally declared, so the impact should not be too great. If you learn from Europe in the future, you will have to pay taxes yourself, which will be troublesome.


allen0128

Our shipping costs have not increased today. The freight forwarder said that the shipping costs have not yet been announced. According to the original price, the express delivery price has increased, and the costs have also been announced. The shipping cost of our products is more than ten yuan, and our customer unit price is 66 US dollars. The majority of it is advertising fees, and the procurement cost is more than 80 yuan. At present, there is no impact on our industry. However, the customs clearance time is too long, which still has some impact.



4 jasmine honey tea

Agree with: Little Swallow in Flowery Clothes

It is extremely unfriendly to TEMU. I think this policy is completely aimed at the trade war between countries. The victims are the C-end of cross-border e-commerce. The impact on the B-end should not be significant, mainly on small package sellers. In the long run, it will still have a big impact. The FBA method should not be affected much.

kuhai666 • Zhengzhou • 1 day ago

Doesn’t your FBA have a first leg? What kind of logic is this?


4 jasmine honey tea • United States • 1 hour ago

@kuhai666: Both have an impact, but the impact is relatively small. Both will increase costs. Small packages are taxed once per order.



wendyli

At present, it seems that the impact on FBA is not significant. But Trump will definitely not let Chinese sellers get away with the FBA pie. Will he eventually impose taxes on all goods sold by Chinese sellers like Europe? Trump is capable of anything!



Anonymous user

Sellers who adopt the distribution model will face more direct and obvious cost pressure and profit shrinkage. The 10% tariff increase may cause sellers who rely on domestic supply chains to face higher operating costs and profit pressure.



Chestunt

For independent sites, TUME, Amazon's low-price malls, and other small package express delivery methods, the cost will increase significantly. At present, there is not much impact on Amazon for the time being, and the specific policy needs to be observed later.



Anonymous user

Sellers’ purchasing costs may increase, but in order to maintain profitability, this tax will most likely have to be passed on to consumers.
Or we can consider changing the production location and looking for a factory in Southeast Asia.



Leonardo1

On the 1st, US President Trump signed an executive order to impose a 10% tariff on goods imported from China. This will inevitably increase the overall operating costs and price increases may be inevitable.



1 Cross-border wolf 1

The freight costs will definitely rise this year. If the tax rate continues to increase, the double-clearance tax-inclusive channel may disappear, and everyone will need to pay the tax on their own.

Gary0728 • Guangzhou • 1 day ago

I mean I want to open a Hong Kong company.



szkeyun

I have the same question. I am planning to test the US site and would like to know whether the tariffs are withheld by Amazon like in the European site, or in some other form. Does it have any impact on sellers?

Bear Dry • Foshan • 3 days ago

What Amazon deducts is not customs duty, but consumption tax. Customs duty should be paid when importing.


Toda • Hangzhou • 1 day ago

The tariffs are calculated by the freight forwarder when they declare the export. Amazon doesn't care.



GreenTree Inn

The $800 double-clearance tax package has a relatively large impact on FBA, but the American policy is like a child playing house. Today they say go west, and tomorrow they say go east, just like a smokescreen.



New models are a big hit

The impact is still quite large. The tariff increase and the cancellation of free shipping for orders above 800 USD have a big impact on direct mail sellers. For Amazon sellers as a whole, it is becoming increasingly difficult to promote low-priced products.



2381459802

Can I declare a value of 5 USD?
In this way, even if taxes are paid, the cost will be within an acceptable range.

Iriszheng • Shenzhen • 1 day ago

Did your freight forwarder tell you that there would be a handling fee of 30 yuan for each shipment?


bei333221 • Fuzhou • 1 day ago

@Iriszheng: They charge 20 handling fee for each small package I deliver by myself.


wendyli • Foshan • 1 day ago

Sellers can decide how much to declare, but if they are found to have declared too little during spot checks, the risk of customs deduction will be borne by us sellers. Freight forwarding companies don't care about this. On the contrary, freight forwarding companies make more money when policies are unclear!


Enjoychris • Guangzhou • 18 hours ago

@bei333221: A small package used to cost more than 20 yuan, but now it costs more than 40 yuan?


bei333221 • Fuzhou • 9 hours ago

@Enjoychris: Yes, that's it


Helen2024 • Guangzhou • 9 hours ago

I sent a small package yesterday, and the bill came out today. There was an extra 20 yuan in customs clearance fees. The pre-collected tariff for the declared unit price of 10 US dollars was 21.71 yuan, which is a 30% tariff. Each package is at least 41 yuan more than before. I think it’s okay to fill in a declared price of 5 US dollars.




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