Chinese low-cost ecommerce exporters, including Temu, Shein, and Alibaba-owned AliExpress, are facing higher shipping costs and weaker demand in the US and Europe.

This adds pressure from US tariffs and the end of low-value parcel duty breaks for China-origin shipments.

Chinese low-cost ecommerce exports fell 10.9% year on year in April to US$9.81 billion, marking the fifth straight monthly decline, based on Luxembourg-based consultancy Trade and Transport Group’s analysis of Chinese customs data.

A Shenzhen-based womenswear seller on Temu said she raised prices by US$2 after shipping costs rose by about US$1 per garment.

China-US and China-Europe air cargo rates had already remained elevated at about US$5.50-US$6 per kg and US$4 per kg.

In the US, parcels worth less than US$800 had long entered under de minimis rules, which waive duties on low-value imports. Shipments from China lost that exemption on May 2, 2025.

In Europe, the European Union has agreed a 3 euros (US$3.5) levy on low-value commercial parcels from third countries from July 1, 2026.

That adds incentives for platforms to move inventory closer to customers, as seen in Shein opening a third warehouse in Cannock near Birmingham, the UK.

🔗 Source: Reuters

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