The commercial dispute between the United States and China continues to intensify due to the decision of President Donald Trump To apply high tariffs to imports from its main trading partner, the manufacturing Asian giant.
Unlike other countries that have tried to reach agreements with Washington in front of the “reciprocal tariffs” driven by Trump, China has chosen to respond by increasing its own taxes on US products and although they have already started looking for that bilateral agreement, the repercussions of tariffs are already seen.
One of the most impacted sectors is the trade of “minimis” products, a Latin term that means “too small to import”. These consist of small packages sent directly to consumers from abroad, usually without going through warehouses or logistics centers.
Specifically, Shein experienced a 23% decrease in its sales in the United States during the week from April 25 to May 1, Compared to the previous week, when the increases had not yet been applied. This is indicated by Bloomberg Second Measure data, which analyzes credit and debit card transactions.
On the other hand, the sales of Temu were reduced 17% in that same period. These falls contrast with the increase in sales registered in March already, when consumers advanced purchases of products in anticipation of imminent price increases.
Until two weeks ago, the packages considered by Minimis enjoyed benefits such as the exemption of customs and tariff statements. Although each individual shipment is small, they have arrived in large volumes to the US. Through discount platforms such as Shein, Aliexpress, Temu and Shopee stores. In fact, in 2024 they came to represent US $ 46,000 million of imports.
The term of the minimis exemption for imports from Continental and Hong Kong does not imply that Americans can no longer receive small packages from those destinations. However, these products must go through customs and are subject to tariffs, whose costs, temporarily fall into the consumer.
According to Bloomberg, After the elimination of exemption, Temu announced that it is incorporating US merchants with the intention of offering, For now, only products manufactured in the US to local consumers. The company said it plans to keep prices without changes.
Tariffs not only affect prices in Shein, but also their long -term strategy: their initial public offer has stopped while evaluating the commercial impact and expects regulatory approvals. Since April 25, the Temu store has increased the offer of stored products in the US, whose prices have remained stable by not being subject to tariffs.
The economy in China
Goldman Sachs Group analysts reduced their projection of economic growth for the country to 4% this year, from 4.5% previous and 5% reached in 2024. William Farid Barreto, Master in senior direction, believes that “the increase in prices in imported products would directly impact low -income households since the price increase cuts them purchase power. Consequently, a collapse of formal retail demand would be generated.”
Since May 2, these Minimis shipments lost the exemptions they enjoyed. Before that date, for a package to qualify as a minimis under US regulations, its value could not exceed US $ 800, a high threshold compared to other countries, where it is around US $ 40 in Canada and US $ 150 in the Eurozone. After May 2, the fixed rate rose to US $ 100, and from June 1 will rise to US $ 200.
The Chinese online store Temu has begun to transfer almost all the new import taxes imposed by Donald Trump to its customers in the US for products sent directly from China.
Meanwhile, in Shein, the average price of the 100 best -selling products in the beauty and health category doubled in the last two weeks of April, while prices in the category of toys and games rose more than 60%.
Impact on imports
Following this decision, many US citizens have expressed their discontent.
In a survey conducted by Yougov/Economist, 57% of young people between 18 and 29 years old said to disapprove the management of President Donald Trump as president, A drop of 14 points regarding when he assumed the position, being the most pronounced among all the age groups.
Due to the actions taken by the US government, trade platforms such as Shein and Temu have suffered important falls in their sales after price increase to compensate for new tariffs.
This is an early sign that Trump promoted policies have begun to affect the popularity of these Chinese platforms.
Clara Inés Parra, a doctor in Economics, affirms that “the elimination of the exemption of Minimis could benefit certain sectors of local trade and protect them against global competition, but also runs the risk of curbing entrepreneurship and hindering the access of small businesses to the international supply chain,” he said.
