Does 34% Tariff on China Spell Trouble for Shein and Temu?

Belizeans who love shopping online from Chinese businesses like Shein and Temu might need to rethink their purchases. The Trump administration’s new tariff regime adds a thirty-four percent tax on products from China, on top of the existing twenty percent. Since items from these online stores are shipped from China through the U.S., a fifty-four percent duty could be applied, significantly raising the price for consumers.

 

Dr. Leroy Almendarez, Economic Consultant

“If China is now at fifty-four percent, thirty-four plus twenty, because you could see the cascading effects with the tariffs when they were mentioned. These countries are there for doing business. An online platform means you don’t need physical space so that will reduce your cost.  What they can also do, which I am not sure they will do, but what some entities or business will do, is an application of a thirty-four percent tax or let us say it become fifty-four percent, you might decide to share the cost, maybe at least for a period of time, which means you have reduced your revenue as well. Let us say for example that you had already placed an order for something from China a week ago, what happens after yesterday, is an application of that tax unto that product that you have purchased, or we say that was old stock and therefore. I don’t think they will do that. So, we will really have to see how the world will react. CARICOM should have been more proactive, there could have been some anticipation that this was possible.”