Trump's Tariff Threats Drive Some Retailers Out of the US

With the end of a US tariff exemption for small parcels, on Friday, some retailers have stopped selling to customers in the US while others are seeking temporary workarounds in the hope the tariff rate may be reduced.

- Reuters

LONDON:

The removal of "de minimis" - duty-free treatment of e-commerce packages worth less than $800 - for products originating from China and Hong Kong exposes those goods to tariffs of 145% on most Chinese goods following US President Donald Trump's decision last month. The move upended global trade and triggered retaliation from Beijing.

British beauty products retailer Space NK has paused e-commerce orders and shipping to the US "to avoid incorrect or additional costs being applied to our customers' orders", the company said in a notice on Wednesday. It is not alone.

Understance, a Vancouver-based company that sells bras and underwear manufactured in China, told customers in an Instagram post that it would no longer ship to the US due to the tariffs, saying it will resume once there is clarity.

"We're going from zero to 145%, which is really untenable for companies and untenable for customers," said Cindy Allen, CEO of Trade Force Multiplier, a global trade consultancy. "I've seen a lot of small to medium-sized businesses just choose to exit the market altogether," she added. Players willing to continue to access the US market are forced to hike their price tags.