U.S. Ends De Minimis Tariff Exemption, Reshaping Cross-Border eCommerce
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 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 eCommerce. Meanwhile, platforms like Etsy are modifying procedures to help sellers comply.
📦 Temu Halts China Shipments to U.S. Amid Escalating Tariffs
In response to the new tariff regulations, Temu, a Chinese eCommerce 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.
📈 SiteOne Reports 140% Surge in eCommerce Sales for Q1 2025
SiteOne Landscape Supply reported a 140% year-over-year increase in eCommerce sales for its fiscal Q1 2025. This growth is attributed to the company’s expansion of customer engagement through its website and mobile tools. The strong digital performance came despite a broader seasonal slowdown, helping offset a larger net loss and modest organic sales decline. SiteOne’s eCommerce strategy, including self-service ordering, inventory visibility, and scheduling tools, is aimed primarily at landscape professionals. The company is also investing heavily in last-mile efficiency through DispatchTrack, its logistics software platform. SiteOne operates more than 690 branches across 45 U.S. states and six Canadian provinces and estimates it holds about an 18% share of the fragmented $25 billion landscape supply market. Digital Commerce 360
🧠 Small Businesses Embrace AI to Cut Costs and Expand Globally
Despite persistent concerns over trade policy, 68% of small and mid-sized businesses in the U.S. are meeting or exceeding their performance goals in 2025, thanks to the adoption of artificial intelligence (AI) and digital tools. According to a new survey from DHL Express, 57% of respondents cited operational costs as their top internal challenge, driving increased investment in automation and AI. At the same time, only 6% reported problems integrating recent technology, signaling widespread progress in digital transformation. Europe was the top growth target (35%), followed by Asia (28%) and Latin America (25%). Digital Commerce 360
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