US Cuts Tariffs on Chinese Packages, Boosting Shein and Temu

US Cuts Tariffs on Chinese Packages, Boosting Shein and Temu

africa.chinadaily.com.cn

US Cuts Tariffs on Chinese Packages, Boosting Shein and Temu

The United States reduced tariffs on small packages from China to 54 percent from 120 percent, benefiting online retailers like Shein and Temu and US consumers; this follows a 90-day pause in higher tariffs between the US and China.

English
China
International RelationsEconomyTariffsGlobal TradeE-CommerceUs-China TradeSheinTemuDe MinimisImport Duties
SheinTemuUs Postal ServiceCommerce DepartmentBaird Equity ResearchCongressional Research ServiceUniversity Of PennsylvaniaMiami University Of OhioYale UniversityUniversity Of CaliforniaLos Angeles
Donald TrumpHoward LutnickZ. John ZhangYao Jin
How does this tariff adjustment relate to broader US-China trade relations and the de minimis exemption?
This tariff reduction follows a 90-day pause on higher tariffs between the US and China, suggesting de-escalation of trade tensions. The move allows Shein and Temu to import more goods, replenishing US inventories and potentially increasing market share. The de minimis exemption, allowing low-value packages to enter duty-free, is key to this change.
What is the immediate impact of the US tariff reduction on Chinese online retailers like Shein and Temu and US consumers?
The US reduced tariffs on small packages from China, lowering them from 120 percent to 54 percent. This impacts online retailers like Shein and Temu, significantly reducing their import costs and benefiting US consumers with lower prices. A flat fee of $100 per parcel remains.
What are the potential long-term consequences of this policy shift for Chinese online retailers, and how might they adapt?
The significant increase in Chinese exports utilizing de minimis—from \$5.3 billion in 2018 to \$66 billion in 2023—highlights the impact of this policy change. Future implications include potential adjustments to Shein and Temu's business models, such as increased US-based production, to maintain competitiveness despite the tariffs. Continued trade negotiations will likely shape the long-term effects.

Cognitive Concepts

3/5

Framing Bias

The article frames the reduction in tariffs as primarily a positive development, highlighting the benefits for US consumers and the Chinese companies. The headline could be interpreted as celebratory. The focus on the positive impacts of lower prices and increased access to goods overshadows any potential negative consequences. The inclusion of quotes from experts who praise the move further reinforces this positive framing.

1/5

Language Bias

The language used is largely neutral, although the framing of the tariff reduction as a "respite" from high prices and the repeated emphasis on the positive economic impacts subtly tilts the narrative in a favorable direction. While not overtly loaded, the choice of words subtly influences reader perception. Suggesting alternatives like 'change in tariff policy' instead of 'respite' would make it more neutral.

3/5

Bias by Omission

The article focuses heavily on the economic impacts of the tariff changes on companies like Shein and Temu and US consumers, but omits discussion of potential negative consequences. For example, there is no mention of the impact on US businesses that might compete with these Chinese retailers, or the potential for exploitation of workers in the Chinese supply chain. Additionally, while the article mentions the initial justification for the tariff increase (countering illicit opioid flow), it doesn't delve into the effectiveness of this measure or alternative strategies.

2/5

False Dichotomy

The article presents a somewhat simplified view of the situation, framing it largely as a win-win scenario for US consumers and the Chinese companies. It doesn't explore the potential complexities and downsides of the situation, such as the potential negative impacts on US businesses or workers, or the potential for continued exploitation within Chinese supply chains. The choice to focus predominantly on the positive aspects presents a somewhat limited and potentially misleading view.

Sustainable Development Goals

Reduced Inequality Positive
Indirect Relevance

The reduction in tariffs on low-cost packages from China benefits US consumers by lowering prices of goods from online retailers like Shein and Temu. This makes goods more accessible to lower-income consumers, thus reducing inequality in access to affordable goods.