Trump’s new tariff policy hits Chinese sellers hard!

The situation is going crazy. Cross-border sellers have been hit hard just after the Chinese New Year! On February 1, 2025, US President Trump signed a series of executive orders, specifically:

1. Impose a 10% tariff on goods imported from China.

2. Imposing an additional tariff of 25% on imports from Canada and Mexico, and a 10% tariff on energy resources from Canada.

3. The tariff exemption policy for packages valued at less than US$800 has been cancelled.

The exemption policy for parcels with a value of less than $800 has been cancelled. In the logistics service model, the most directly affected is of course the direct mail parcels! The volume of this type of logistics is bound to decline, and the small parcel logistics service companies are in a big headache again. This challenge is coming again! After the exemption is cancelled, assuming that the average tariff rate is increased to 15%-25%, the price advantage of its products will shrink by 30%-50%, causing a large number of long-tail SKUs to be forced to exit the market due to loss of profit margins. The costs of logistics platforms, payment platforms, etc. will also increase.

At the same time, since e-commerce platforms have to adjust their policies and adopt the method of bulk imports and payment of tariffs in the future, and store goods in centralized warehouses in the United States, the overseas warehouse model will usher in a new wave of growth in the future, and will drive small item delivery, overseas warehouse transit, after-sales, inventory handling and other services!

Next, it is very likely that logistics companies with similar models will go bankrupt, and sellers will also face large tax payments!