Usps stops all packages from China, which sends the e -commerce industry to chaos

While previous administrations thought about removing minimal exemption or providing reforms, Trump was the first to do so already. “This is the management version of rapid move and breaking things,” says Ram bin Zeun, the founder and CEO of Publican, a digital shipping examination platform, citing one of the basic principles of the startup culture.

This step is likely to create chaos and confusion in the online shopping industry, in addition to making purchases more expensive for consumers, especially because many global manufacturers and Internet sellers are in China. Shoppers are now on a hook not only for a 10 percent collective tariff, but also whatever the original tax rate that has been exempt from their products until Tuesday.

Cindy Allen, who has worked in international trade for more than 30 years, and is the CEO of the Consulting Consulting Company for Commercial Trading, gave a wireless example of the additional cost of the tariff: a woman’s dress made of artificial fiber is shipped from China until De Minimis will be subject Now for a 16 % regular tariff, 7.5 percent of the 301th section specifically for goods from China, the new tariff by 10 percent required by Trump, additional processing fees and customs brokerage fees, and perhaps increased mediation and dealing costs due to sudden change in the rules .

“Will the dress that was 5 dollars now cost $ 5.50 or $ 15?” Allen says. “We do not know. This depends on how these retailers interact and change their business models.”

In the direct term, customs clearing will become a challenge for most e -commerce companies. Their long -term attention is the potential effect on profitability. TEMU and Shein’s attractiveness and similar Chinese e -commerce companies are the extent of reasonable prices. If this changes, the landscape of e -commerce and consumer behavior in the United States may also change significantly.

While USPS announced the suspension of accepting any parcels from China and Hong Kong, CBP did not explain how the agency applies to the new Trump tariff other than its saying In a declaration It will reject requests to exempt minimal China starting today. CBP did not respond immediately to the WIRED request for comment.

Although trucks can be easily removed on the entry limits, it will be a greater challenge to stop the loaded shipping trips, which in recent years have been a preferred way to charge minimal packets.

There are two types of possible results in the short term. If CBP decides to keep all minimal beams of China on the border to be classified properly and pushed for import duties, this may cause a huge accumulation, letting customers wait indefinitely for their orders.

Instead, CBP can choose to keep things moving and charging definitions retroactively, according to Hart. There is a mechanism called “liquidation” that allows the US government to take a year or even for a longer period to calculate the final import duties and ship their importers retroactively. “So from the perspective of liquidation, you are a kind of hook for a short period.” At the present time, it is not clear the number of packages that will make it across the border in the first place.