Page Reader AI | TikTok Shop flags US risks, promotes EU market as Trump triples tariffs on small parcels

TikTok Shop flags US risks, promotes EU market as Trump triples tariffs on small parcels | South China Morning Post

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Increased US Tariffs on Small Parcels

US President Trump's decision to triple tariffs on small parcels from mainland China and Hong Kong, eliminating the previous "de minimis" exemption, significantly impacts businesses like TikTok Shop. This means all packages, regardless of value, will face tariffs.

Impact on TikTok Shop and Merchants

TikTok Shop has informed its merchants about the end of the exemption, emphasizing that all goods will now be subject to tariffs. This change directly affects the profitability of Chinese online sellers who previously benefited from the waiver.

The new tariff rate will be 90% of the package value.
Postal item fees will increase to $75 (May 2nd) and $150 (June 1st).

The exemption greatly benefited cross-border e-commerce platforms including TikTok Shop, Shein, Temu, and Amazon.

TikTok Shop's Response

In response, TikTok Shop is actively recruiting merchants for European markets (Spain, Germany, Italy, and France) and supporting US sellers already operating in these regions.

TikTok Shop, a major e-commerce platform connecting Chinese vendors with overseas consumers, has flagged US tariff risks to its merchants, as well as promoting European sites, after US President Donald Trump tripled tariffs on small parcels exported from mainland China and Hong Kong, which were previously exempt from duties.

The ByteDance-owned platform has informed merchants selling into the US market about the end of the “de minimis” exemption, which comes into effect in early May. “Regardless of the value of goods, they will be subject to tariffs,” according to a message sent to merchants.

The exemption had greatly benefited Chinese online sellers by waiving duties on items valued at under US$800, underpinning the boom in cross-border e-commerce via platforms such as TikTok Shop, Shein, Temu as well as Amazon.com.

But according to an amendment on so-called reciprocal tariffs imposed by the White House, the new rate on packages priced up to US$800 will be 90 per cent of their value, up from the original levy of 30 per cent.

The fee per postal item will be raised to US$75 from the original US$25 after May 2, and to US$150 after June 1.

Meanwhile, TikTok Shop has put more effort into recruiting cross-border merchants for European markets, including Spain, Germany, Italy and France, and supporting qualified US sellers operating in these markets, according to its official WeChat account.