Chinese exporters selling on Shein, Temu, TikTok Shop, and Amazon remain worried about US tariffs despite a 90-day extension of the tariff truce between Beijing and Washington.

Their concerns were raised at the China Cross-Border Ecommerce Trade Fair in Guangzhou, which hosted more than 1,000 exhibitors.

Many firms said US business was disrupted due to policy uncertainty, with some suspending shipments during tariff hikes.

Guangdong Mingjian Electronics Technology, which sells on Amazon, halted US sales for nearly two months earlier this year.

EDA Group, a logistics provider, said clients paused shipments during tariff increases and are now looking at Europe.

Yiwu Shuangyuan Christmas Artware lost US business but still met this year’s Christmas shipment targets.

🔗 Source: South China Morning Post

🧠 Food for thought

1️⃣ Chinese cross-border e-commerce faces threats to massive growth trajectory

The concerns voiced at Guangzhou’s trade fair reflect the massive scale of what’s at stake for Chinese exporters.

China’s cross-border e-commerce transaction volume surged from 0.7 trillion yuan in 2008 to 10.5 trillion yuan in 2019, representing over 30% of the country’s total imports and exports by 20191.

This $273 billion cross-border e-commerce market in 2021 grew at a 15% annual rate, making it a critical component of China’s economy2.

The recent tariff escalations pose a direct threat to this growth engine, with new US tariffs potentially reaching an effective rate of 54% on Chinese imports3.

The elimination of the de minimis exemption, which previously allowed small packages under $800 to enter the US duty-free, specifically targets the business model that platforms like Shein and Temu rely on for cost-competitive pricing3.

2️⃣ Trade uncertainty accelerates geographic diversification beyond traditional strategies

The exporters’ pivot to alternative markets reflects a fundamental shift from US-centric export strategies to truly global approaches.