Trump’s New Tariffs Shake Up E-Commerce — Some Retailers Quit U.S. Market

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A major shift is hitting global e-commerce 🌎, and U.S. shoppers are feeling the shock. On Friday, the U.S. officially ended its tariff exemption for small parcels — a rule known as de minimis — which allowed packages under $800 from China and Hong Kong to enter duty-free. With this exemption gone, Chinese goods are now slammed with a staggering 145% tariff 😱, thanks to President Trump’s latest trade move.

The ripple effects have been swift. Several online retailers, from small startups to global giants, are pausing or restructuring their U.S. sales. The result? American shoppers are bracing for higher prices, fewer choices, and longer delivery times 📦💸.

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🚫 Some Retailers Pull Out, Others Brace for Impact

British beauty brand Space NK announced it’s halting all e-commerce orders to the U.S. “to avoid incorrect or additional costs” being passed on to customers. Meanwhile, Canadian lingerie company Understance told customers via Instagram it’s suspending U.S. shipments “until there’s more clarity” 🛑.

“This is an enormous jump — from zero to 145% tariffs,” said Cindy Allen, CEO of global trade consultancy Trade Force Multiplier. “For small and medium-sized businesses, it’s just not sustainable. Many are simply exiting the U.S. market altogether.”

💲 Price Hikes Rolling In

For retailers determined to stay in the game, price increases are now unavoidable. British fashion brand Oh Polly has already raised U.S. prices by 20% and may hike them further.

Fast-fashion giant Shein — which relies heavily on Chinese manufacturing — tried to calm nervous shoppers this week, posting on its U.S. Instagram account: “Some products may be priced differently than before, but the majority of our collections remain affordable.” 🇨🇳👗

Meanwhile, Temu, the U.S. arm of China’s PDD Holdings, has shifted strategy. It’s now highlighting products already warehoused in the U.S., labeled “Local,” to dodge import charges. A Temu pop-up reassures customers: “No import charges for local warehouse items.” But here’s the catch: once that pre-tariff inventory runs out, new shipments will face the full brunt of the tariff wave 🌊.

📉 Ad Cuts, Strategy Shifts

Both Shein and Temu have quietly slashed U.S. digital ad spending over the past few weeks, bracing for slower sales. And while Temu claims its pricing “remains unchanged,” experts warn that imported items will become harder to stock and costlier to sell.

“This is a seismic shift in global trade,” said Hugo Pakula, CEO of the trade automation platform Tru Identity. “If your inventory isn’t already in the U.S., selling into the U.S. is going to hurt.”

🔍 Why the Crackdown?

Originally designed to smooth global trade, the de minimis rule became a lightning rod for criticism in Washington. Lawmakers from both parties blamed it for fueling a surge in cheap imports, counterfeit goods, and even fentanyl smuggling into the U.S. 🚫💊

In fact, 97% of intellectual property seizures by U.S. Customs in 2024 came from de minimis shipments. Without this loophole, companies must now report detailed component-level information to U.S. customs — a massive administrative headache on top of the tariff burden 📑⚙️.

🚚 Big Delivery Players Brace

Major delivery firms like UPS are also watching nervously. CEO Carol Tome recently said many small-to-medium UPS customers source 100% of their goods from China — meaning they’re now on the frontlines of this trade shake-up.

U.S. online marketplace Etsy has rushed to help sellers navigate the storm, making it easier for them to declare country of origin. That’s critical, as tariffs are based on where products are made, not where they ship from 🌍.

🛍️ Winners and Losers

While e-commerce faces turmoil, some traditional retailers see opportunity. British fast-fashion brand Primark, which sells in the U.S. exclusively through brick-and-mortar stores, says it could benefit from the chaos.

“With prices going up on this part of the trade, I wonder if some Americans might start going back to shopping malls to find value,” said George Weston, CEO of Primark’s parent company Associated British Foods 🛍️🏬.

⚖️ The Big Picture

Trump’s tariff push aims to pressure China, protect U.S. manufacturing, and address trade imbalances. But for consumers, the immediate reality is less choice and higher prices. And for retailers, it’s a moment of reckoning: adapt, pull out, or pass the costs along to shoppers.

As the dust settles, Americans may rediscover their local mall — or face a more expensive online cart.