Here is your curated daily e-commerce news briefing for Friday, May 2, 2025, focusing on the most impactful developments in the U.S. market.
🇺🇸 U.S. Ends Tariff Exemption for Small Parcels, Reshaping Cross-Border E-Commerce
The U.S. government has officially terminated the “de minimis” tariff exemption, which previously allowed imports under $800 from countries like China and Hong Kong to enter duty-free. This policy change, initiated by the Trump administration, imposes tariffs as high as 145% on these imports, significantly affecting small and medium-sized retailers. Consequently, some retailers, including Space NK and Understance, have ceased U.S. shipments, while others like Oh Polly and Shein have increased prices or altered their strategies. Temu, for instance, has shifted to using U.S. warehouses to circumvent the new tariffs. This move aims to curb smuggling and counterfeit goods, especially amid concerns over fentanyl passage and cheap Chinese imports. The policy change is expected to benefit traditional retailers like Primark, which do not rely on e-commerce. Meanwhile, platforms like Etsy are modifying procedures to help sellers comply. B2B Marketplace+4Reuters+4Financial Times+4
📦 Temu Overhauls U.S. Operations Amid Escalating Tariffs
In response to the new tariff regulations, Temu, a Chinese e-commerce platform owned by PDD Holdings, has discontinued direct shipments from China to U.S. consumers. The company will now fulfill all U.S. sales through domestic sellers, a significant shift likely to impact its market scale. This change follows the end of the U.S.’s “de minimis” rule, which previously exempted imports under $800 from duties. As of May 2, 2025, low-value Chinese imports face a 120% tariff or a flat $100 fee—doubling in June. These changes affect not only Temu but also rival Shein, whose $38 billion revenue relies heavily on the U.S. market. Both companies had previously leveraged the “de minimis” loophole and aggressive online advertising to offer cheap Chinese goods directly to consumers. Tariffs of up to 145% on Chinese goods and reciprocal levies from China have intensified the U.S.-China trade war. Despite the overhaul, Temu says it will maintain its U.S. pricing and continue sourcing from China for other Western markets. Meanwhile, Beijing is reportedly considering resumed trade talks with Washington. The Independent+5Financial Times+5Reuters+5
📈 Amazon Reports Record Q4 2024 Sales
Amazon has announced a 10% year-over-year increase in global sales for Q4 2024, reaching $187.8 billion. Of this, $115.6 billion came from North America. This growth underscores Amazon’s continued dominance in the e-commerce sector, even amid rising competition and regulatory challenges. Digital Commerce 360
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