The White House announced the Trump administration's latest "reciprocal tariff" adjustment plan on April 10. According to the plan, starting May 2 (local time), small parcels valued at no more than US$800 (including those sent from the Chinese Mainland and Hong Kong) will be subject to a 120% tariff based on their declared value or a flat fee of US$100 per parcel.
In response, US-based e-commerce platform Temu made significant adjustments to its operations, removing all China-direct shipping products from its platform before the new tariffs took effect. CNBC reported that Temu suspended its direct logistics channel from China to the US, shifting all orders to fulfillment centers in the US West and East Coasts. Products previously listed as "China direct shipping" now display as "out of stock," with only items from US warehouses available for purchase.
These changes have disrupted other e-commerce platforms as well, forcing them to restructure logistics networks. For some products, prices have doubled, and users have reported widespread shipping delays. Certain foreign brands have halted shipments to the US altogether. A report by The Wall Street Journal highlighted a footwear company that moved inventory from Canada to US-based warehouses to avoid tariffs. Without such measures, a pair of sneakers originally priced at US$175 would incur over US$300 in taxes if shipped via Canada.
Experts argue that the removal of the tax exemption for small parcels is effectively a tax on American consumers. An analyst noted that this means higher prices, slower logistics, and US consumers ultimately bearing the burden of this policy.
Amid increasing trade barriers, a unique cross-border shopping trend has emerged: American consumers are traveling to China for "personal shopping trips" to bypass the tariffs. According to small US traders, this unconventional procurement method is feasible due to China's relatively accessible tourist visas and the 72/144-hour visa-free transit policy, which facilitates short-term purchasing trips.
The contrast between business environments in China and the US has also driven this trend. Interviewed merchants noted that China's diversified supply chain ecosystem offers more flexibility and independence compared to monopolized sectors in the US. This diversity allows smaller American traders to negotiate better prices, expand product options, and avoid reliance on corporate giants.
However, analysts warn that if US-China trade barriers continue to escalate, these cross-border procurement methods may become unsustainable. Small US businesses would be forced to rely on monopolized domestic markets, facing tighter supply chain constraints and higher costs. Such market concentration could create a vicious cycle, further squeezing the survival space for small enterprises.
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