This year has already been recorded as a critical turning point that reshaped the course of global e-commerce. Neither economists nor e-commerce professionals have witnessed a period quite like this before. With U.S. President Donald Trump returning to the White House for a second time, aggressive tariff policies that shook the global trade system have mobilized many actors — not only China but also players from Amazon to Shein, from local meat vendors in Canada to customs authorities in Europe. In this new era, “Made in China” has become more than just a label; it’s now a component of new cost structures.
Trump’s Tariffs: Building a New Trade Wall
As soon as he took office, U.S. President Donald Trump launched a new wave of tariffs on thousands of products imported from China. While we may not know the exact figures yet, tax rates on some products are said to have reached up to 145%, and overall increases reportedly exceed 200%. Furthermore, as of May 2, the tax exemption for goods under $800 — the de minimis rule that long served as a shield for Chinese platforms — was revoked. This move directly targeted the competitive edge of Chinese giants like Shein, Temu, and AliExpress.
The impact of these regulations wasn’t limited to digital retail. For example, DHL was temporarily forced to halt deliveries of international packages. In fact, the removal of this exemption was quickly tested after Trump took office. In February, Trump imposed restrictions on parcels arriving from China and Hong Kong, but the decision was reversed the next day. The U.S. Postal Service (USPS) had a reason: the new tax system had not yet been established, and the infrastructure was not ready. Though this decision was suspended within 24 hours due to pressure, it alone revealed how fragile the international e-commerce chain is.
Alarm Bells and Countermeasures on the Amazon Front
The effects of these developments are multi-layered for e-commerce giant Amazon. Around 60% of the products listed on Amazon’s global marketplace come from independent sellers. A large portion of these products are directly or indirectly connected to China. And let’s not forget Amazon’s Haul project — which also draws its strength from China!
Even though Amazon CEO Andy Jassy may not fully grasp the consequences yet, he stated in an interview with CNBC: “If your margin isn’t above 50%, it’s hard to tolerate these costs. These increases will directly reflect on prices.” And that’s exactly what happened! Some sellers canceled pre-orders and entered negotiations with new suppliers. Amazon itself halted some import orders. It’s clear that both Temu and Amazon have made strong preparations after the initial wave. During this time, consumers also began stockpiling products to avoid potential price hikes.
Price Increases Now Inevitable for Temu and Shein!
Temu and Shein were among the platforms most affected by Trump’s tariffs. By the end of April, both platforms warned users of impending price hikes. The cost of bringing low-cost goods into the U.S. is rapidly rising. This is driving Chinese companies to seek alternative production centers. However, a paradox emerges here: according to some sources, the Chinese government has warned companies like Shein not to diversify their supply chains. So, while Trump is exerting pressure from the U.S., Beijing doesn’t want to lose control internally. This tension has paralyzed the global strategies of Chinese companies.
Europe Must Choose: The U.S. or China?
As mentioned at the beginning, this transformation is not limited to the U.S. The European Commission has also taken steps to prevent the duty-free entry of low-value packages from China. Currently, goods under €150 can enter Europe tax-free. However, the Commission predicts that removing this exemption could generate over €1 billion in annual revenue. Of the 4.6 billion small parcels arriving in Europe in 2024, 91% originated from China. France alone received 1.5 billion parcels, 800 million of which benefited from the current exemption. Local brands within Europe are also pressuring their governments and the EU on this issue. As a result, Europe’s instinct to protect its supply chains is growing stronger by the day.
What Comes Next?
Actors in global e-commerce are now focusing less on low-cost production and more on minimizing geopolitical risks. This puts concepts like “supply chain diversification, regional production shifts, repositioning logistics hubs, and restructuring tax planning” at the forefront. For platforms focused on the U.S. and EU markets, the “produce locally, sell locally” model is becoming popular once again. Platforms like Walmart are launching new campaigns with this in mind.
Winners of the New Era Will Be Those Who Localize
Although Trump’s tariffs may create short-term chaos, they seem poised to establish a new balance point in e-commerce in the long term. High tariff walls are forcing not only Chinese companies but global players as well to rethink their operations. Those who quickly adapt and strengthen localization strategies will emerge as winners. Those who rely solely on price advantages, however, will lose. E-commerce is no longer just a game of “speed and price,” but also a test of strategy and resilience.
