Digest opened free editor
Rola Khaleda, FT editor, chooses her favorite stories in this weekly newsletter.
Analysts said that Donald Trump's campaign to access the customs tariffs of small commodities could threaten business models in Chinese e -commerce groups Shin and Timo by raising their costs while benefiting from Amazon.
The US President imposed an additional 10 percent tariff on Chinese imports during the weekend, and said that the so -called alleged minimum rules for exempting shipments of less than $ 800 of duties will not be applied anymore.
The US Customs Authority said on Monday that its clients would now have to verify the contents of each mail package from China and officially survey it. This may slow the charges and increase the costs of companies that were partially driven in the United States with effective connections to the cheap goods produced by the Chinese.
The effect will be much greater than just. . . “A few beams,” said Henry Gao, a law professor at the University of Singapore. “Everything from China will be because of this.”
Shin The TEMU competitor, who sells clothes and other elements at low prices, has grown quickly since the Covid-19 pandemic and may have been responsible for more than 30 percent of the tariff-free shipments that reach the United States under the regulations, which is a report in Congress in Said 2023. For American Customs, about 4 million minimum shipments are treated every day.
More than half of the minimum shipments in the United States stem from China. American customs and border protection data showed that the average value of requests was about 50 dollars, with a total of $ 47.8 billion in qualified goods that are shipped in the first three quarters of 2024.
Trump's move comes as Chinese companies are facing a violent reaction in the western markets, where the competitors say they are undermining them in an unfair and organized manner like the European Union claiming to charge goods below the required level.
It is also bad news for Chinese suppliers of platforms such as Shein and Temu, who have become major clients and helped compensate for requests after their previous model of selling in large quantities for large Western buyers and trading companies were disturbed by the customs tariff.
CEOs of Sheen, who targets a London List With the evaluation of about 50 billion pounds, he argued that its products would remain competitive due to its strategy of controlling production volumes on the basis of demand.
The cancellation of the exemption came as Trump also announced a new tariff for goods from Canada and Mexico. These were suspended After Trump spoke to the leaders of the countries. The definitions of China entered into force on Tuesday, and Trump was scheduled to speak with Chinese leader Xi Jinping in the coming days.
The American Amazon Electronic Trading Company has sought to face the threat represented by the cheap Chinese suppliers through the launch of the “Haul” brand that offers products of less than $ 20 with shipping times ranging from two weeks or two weeks. Analysts now said it may be possible to avoid “a race to the bottom.”
Andy Wu, associate professor at Harvard University, said: “The closure of the vulnerability is conducive to Amazon,” adding that the company “prefers to buy in large quantities. To get the greatest value of its logistical system,” said Andy Wu, associate professor at Harvard University.
The DE Minimis rules are designed to reduce the burden on customs officials by removing the need to examine each shipment of small value, and companies and consumers allowed us to avoid a lengthy customs operation when purchasing less valuable elements from abroad.
But they are increasingly confronted by the opposition, which prompted former US President Joe Biden A proposal to tighten the rules For Chinese imports late last year, while the European Union suggested exemptions for beams of less than 150 euros, the financial Times I mentioned.
Andrew Wilson, Deputy Secretary -General of Policy at the International Chamber of Commerce, said that removing the minimum threshold is more likely to hurt small companies instead of companies such as Shin and Timo.
“SHEIN and TeMu will move their moves towards what the Amazon model is to get warehouses in the United States. There may be some effect on profitability and costs that may be transferred (on) consumers, but it will be large enough and they will have enough resources (Reducing it).
Timo, owned PDD The group started last year Recruitment Chinese suppliers who hold goods in warehouses in the United States and ask the current suppliers to take the costs of shipping and storage and deliver the last tilt themselves. Shen expanded the logistics network in the United States and has sought to diversify its production to Brazil, Turkey and India.
Shang Lu, a professor at Dilayer University, said that uncertainty in politics was a greater problem than the definitions that adult retailers “develop their business model.”
He said: “The high definitions of sources or operational cost will increase.” But the biggest anxiety is uncertainty. You can really feel it at this stage. “
Participated in additional reports by Elianor Olcott and Laura O'Nita
