On February 7, local time, U.S. President Trump signed an executive order suspending tariffs on low-value packages from China, reinstating the previously canceled small exemption policy. This means packages valued at less than $800 can be exempt from tariffs and inspections. However, these frequent policy changes have caught the market and cross-border e-commerce sellers off guard, and have placed enormous pressure on the U.S. customs system.
Policy Reversals Cause Market Chaos with U.S. Tariff Adjustments
This adjustment can be described as "issuing and recalling orders overnight." Just on February 1, Trump signed an executive order imposing a 10% tariff on goods imported from China and canceling the tariff exemption for small packages under $800. On February 3, the U.S. Customs and Border Protection (CBP) announced the implementation of the new regulation, requiring an additional 10% tariff on Chinese imports. However, just a few days later, due to the accumulation of over a million packages in U.S. customs, the Trump administration announced on February 7 the suspension of the policy, restoring small exemptions.
The abrupt policy change left the U.S. customs department scrambling. According to First Financial, the U.S. customs system suffered severe congestion in just a few days, with packages that could previously clear customs directly now requiring additional declaration information, significantly extending clearance times and increasing costs. Due to staffing shortages, the added tax and declaration procedures drastically increased the workload, with tens of thousands of Chinese packages entering the U.S. each day; under the new rule, over a billion packages annually would need to be declared and taxed.
Multiple international shipping experts and legal professionals warn that unpredictable policies could lead to the collapse of the U.S. customs system, as customs have yet to establish appropriate supporting processes. Meanwhile, Chinese cross-border sellers also face enormous challenges amid policy uncertainty.
Chinese Cross-Border Sellers Face Uncertainty, Await Outcomes
For Chinese cross-border e-commerce, the U.S. market is a battlefield of both opportunities and challenges. The U.S. is the world's largest overseas e-commerce market, but the policy risks are increasingly high, particularly with Trump's return, which further accentuates these uncertainties.
In the short span from February 1 to February 7, the U.S. tariff policy saw drastic fluctuations, forcing many sellers to rearrange strategies. Full-managed businesses like Temu and Shein temporarily maintain a wait-and-see approach, adjusting logistics and pricing strategies with platform guidance. However, some sellers express concerns about the future, predicting that the policy might tighten again.
Amid the unstable policy environment of the Trump administration, whether to advance or retreat poses a significant dilemma for Chinese cross-border e-commerce sellers. Some believe that although the "small exemption" has been reinstated for now, in the long term, U.S. restrictions against Chinese cross-border e-commerce might intensify, necessitating exploration of other markets to mitigate single-market policy risks.
Policies continue to evolve, and the cross-border e-commerce industry is constantly adapting. The ultimate winners and losers in this tariff game are yet to be determined, and whether Chinese cross-border sellers can find new breakthroughs will decide their future in the global market.
