Op-Ed: New China tariffs and USPS disruptions threaten Temu and Shein’s US growth

Rising shipping costs, regulatory scrutiny, and trade barriers could challenge the ultra-low pricing model of these ecommerce giants

Image credit: Microsoft Copilot and Canva

The recent temporary USPS suspension of Chinese and Hong Kong parcels to the U.S., followed by the implementation of a 10% "new China tariff," could have a significant impact on Temu and Shein’s operations in the American market.

Both Chinese companies rely on low-cost, cross-border shipping, often leveraging USPS’s ePacket service for cheap last-mile delivery. Any disruptions or increased costs could slow down delivery times and raise shipping expenses. If new tariffs specifically target low-cost apparel and consumer goods, Temu and Shein may have to either absorb higher costs, cutting into their margins, or pass them onto consumers, making their ultra-low pricing model less competitive.

These platforms already face scrutiny over trade practices, alleged forced labor concerns, and intellectual property issues. Additional regulations or tariffs could further complicate their business models. A major appeal of Temu and Shein is their ultra-low prices, made possible by China's manufacturing and direct-to-consumer logistics. If tariffs increase costs or force changes in their supply chain, domestic competitors like Amazon, Walmart, and Target could gain a pricing edge.

While Temu and Shein have shown resilience by adapting quickly, major shipping or tariff changes could challenge their ability to thrive in the U.S. market as they do now.

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