Chinese companies work around Trump to keep selling to Americans

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Subscribe to enjoy similar stories. President Trump’s temporary suspension of a popular trade exemption that has in recent years turbocharged China-founded bargain platforms Shein and Temu has rattled the country’s cross-border e-commerce industry, jolting the platforms and their suppliers. Last week, after Trump paused a provision for China imports that lets platforms avoid paying import duties and customs inspections on low-value packages, millions of packages were stuck at U.S.

customs. Fashion company Shein responded by increasing previous efforts to encourage suppliers to set up production in Vietnam, meeting with them to offer fresh incentives. Temu raised prices on its website and further pushed suppliers to store inventory in its biggest market, the U.S.

Some Chinese suppliers have begun reconsidering ways to do business with the platforms. Last week, Trump delayed his plan to end the so-called de minimis treatment for China shipments until U.S. officials can establish a system to process inspections and levies.

Industry competitors nevertheless expect further disruptions that could upend the U.S.-China cross-border e-commerce industry, as they forge ahead with steps to counter the anticipated loss of the duty-free provision. Singapore-based Shein denied it was making efforts to lure suppliers to produce in Vietnam. Temu, which is based in Boston and backed by Chinese e-commerce company PDD Holdings, didn’t respond to requests for comment.

Last year, companies sent small packages worth $46 billion to the U.S. from China under the de minimis exception, representing 11% of U.S.-reported imports from China, Nomura economists estimated. A 2023 report by a House committee on China said Shein and Temu accounted for