Topic of the Week - Trump's Tariffs on China Impact US Online Shoppers
The US-China trade war has taken a bite out of American bargain-hunters, with new tariffs on Chinese goods set to increase prices for millions of eCommerce purchases. As of February 4, import duties are now applied to all China and Hong Kong-origin products under the £800 threshold, regardless of how they are routed into the US.
The shift, which was announced by President Donald Trump, has sent shockwaves through the eCommerce industry, with companies like Shein, Temu, and Amazon's Haul service feeling the impact. Shippers and receivers are now required to pay duties on these goods, which can range from 10% to 25% of the total order value.
The new tariffs are expected to increase prices for American consumers, who are already feeling the pinch. According to a report, some online shoppers are receiving bills for duties owed, with charges ranging from $20 to $50 or more per order.
The impact is being felt across the board, with companies scrambling to adapt to the new rules. Some are are absorbing the cost of the tariffs (duties) themselves, while others are passing the costs on to consumers.
The shift is also expected to lead to delays in shipping times, as customs clearance processes take longer to complete. Cider, a fast-fashion retailer has already issued a notice on its website saying that shipping may be delayed due to extended customs clearance times.
The impact of Trump's tariffs on China is being felt by American consumers, who are waking up to the reality of how trade and tariff policies directly impact their lives and pocketbooks. As the situation continues to unfold, it remains to be seen how the eCommerce industry will adapt to the new rules and what the long-term impact will be on American consumers.
eCommerce Market Stats
See some statistics relating to this week’s topics in the eCommerce market below.
Tariff eCommerce stats
- 71% of retailers reported that tariffs have led to price increases for their products, with the average price increase being around 10%.
- 44% of consumers reported changing their shopping habits due to the tariffs.
- 63% of retailers reported that tariffs have increased their costs, with 44% saying the increase was significant.
- 55% of retailers reported that tariffs have reduced their profit margins.
- 35% of consumers reported reducing their spending on discretionary items due to the tariffs.
*Statistics sourced from Statista
That’s all for this week…
If you would like to read more industry related news and insights, check out our articles below, or get in touch to discuss our services!
