TRUMP TARIFFS ON DELIVERY SERVICES: New rules by theU.S President Donald Trump are shaking up the delivery industry. Logistics firms are struggling to adjust as these changes threaten their booming business of shipping small packages from China to the US.
What’s Changing? Trump revoked a rule called "de minimis" for China. This rule had allowed small packages under USD800 to enter the US without duty fees. The change took effect just after midnight on Tuesday, Washington time. This affects billions of dollars in goods sold by retailers like Shein and Temu.
Immediate ImpactThe first effect was confusion. Some logistics companies in China quickly raised prices to handle higher tariffs. The change could also hurt US consumers, who are already struggling with high living costs.
China reported about USD23 billion worth of small parcels sent to the US last year. However, Nomura Holdings estimates the real number could be as high as USD46 billion. The new rule could slow China’s export growth by 1.3 percentage points and reduce its GDP growth by 0.2 percentage points this year.
How This Affects Delivery Companies
Market Share Shifts: Global postal services like the US Postal Service (USPS) handle 50 percent of direct shipments from China to US buyers. Initially, the USPS announced it would stop some shipments. However, it quickly reversed the decision and is now accepting all packages from China and Hong Kong. Companies like FedEx, DHL, and UPS hold 10 percent of this trade, while other logistics firms make up the remaining 40 percent.
USPS Response: The USPS said it is accepting all international packages from China and Hong Kong. It is working with US Customs to ensure the new tariffs are collected.
FedEx's Approach: FedEx is working with its customers to adjust to the changes. A company spokeswoman said shipments between the US and China are still moving but declined to say if delivery times or schedules have changed.
UPS Services: UPS stated that it will continue its delivery services to and from China and Hong Kong.
DHL’s Position: DHL Asia Pacific confirmed that additional fees and longer delivery times may apply. However, it has not stopped handling packages from Hong Kong to the US.
SF Express: One of China’s biggest logistics companies, SF Express, has raised its fees. All e-commerce packages shipped from China now have an extra clearing fee of 20 yuan (USD2.70). The company is also collecting a 30 percent tariff deposit based on package weight.
Shein and Temu: Impact on Shein and Temu Sellers on Shein and Temu are facing new costs. Logistics agents have informed them of a new 3 0 percent tax deposit. Sellers must pay this deposit upfront, and it will be adjusted based on the actual customs charges in the US.
Trump’s new tariffs are already disrupting the global shipping business. Logistics firms and online retailers are scrambling to adjust, while consumers may soon feel the impact through higher prices and longer delivery times.