- Tariff Changes Impacting Retailers: The U.S. has ended the “de minimis” exemption for small parcels, imposing tariffs of up to 145% on Chinese goods, prompting some retailers like Space NK and Understance to halt sales to U.S. customers.
- Price Increases and Market Adjustments: Retailers remaining in the U.S. market, such as Oh Polly and Shein, are increasing prices to offset higher tariffs, while companies like Temu are emphasizing U.S.-based inventory to avoid import charges.
- Broader Implications for E-commerce: The removal of de minimis could encourage consumers to return to physical stores for value, benefiting retailers less reliant on online sales, such as Primark, while complicating logistics for small businesses sourcing from China.
Source Yahoo/Reuters
