Ending the exemption on May 2 would “have a large impact on China’s low-cost goods-selling platforms, such as Temu and Shein”, said Bob Chen, director at Shenzhen-based venture capital firm Mangrove Capital. “They either have to bear the cost or add it to the end price.”
But he noted how some of those Chinese firms are likely to remain competitive, given their low-cost advantage, as many sellers and supply chains are based in China.
“Even if they add the full extra cost to consumers, they are still competitive on price. And I don’t think other platforms such as Amazon [could replace them],” Chen said.
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Trump slaps 34% reciprocal tariffs on Chinese imports as part of ‘Liberation Day’ package
Trump slaps 34% reciprocal tariffs on Chinese imports as part of ‘Liberation Day’ package
