Chinese e-commerce platforms Temu and Shein had planned to expand into the Indonesian market and were even listed on Apple and Google app stores in Indonesia. However, the Indonesian government intervened directly and banned their operations in the country due to concerns that their business model could impact local small and medium enterprises.These platforms sell goods directly from Chinese manufacturers to end consumers without intermediaries, offering low prices that squeeze the survival space of local producers. In the United States, these platforms have become popular due to their prices being significantly below market levels, but the Trump administration's policies pose threats. On one hand, Trump imposed a 145% tariff on Chinese imports; on the other hand, he plans to eliminate the "de minimis exemption policy." This policy allows imported goods valued under $800 to enter duty-free and without customs formalities, helping platforms maintain low prices and gain market share. The total cross-border e-commerce import/export business is valued at CNY 2.63 trillion (approximately IDR 6,039 trillion), and eliminating the de minimis exemption and expanding tariff scope could harm it. It is not only the two major platforms affected by US tariff policies but also Chinese sellers relying on Amazon. The head of the Shenzhen Cross-border E-commerce Association said tariffs have disrupted production and distribution cost structures, making it difficult for many companies to gain a foothold in the US market. Tariffs have also led to customs clearance delays and increased logistics costs. Three-fifths of sellers plan to raise US market prices by 30%, while two-fifths intend to exit the US market entirely. Some sellers plan to sell off inventory, reduce Amazon advertising spending, and raise prices in the US market; others are no longer developing new products, believing that serving the US market from China is no longer viable if the situation remains unchanged, and that relevant manufacturing should be moved to Vietnam, Mexico, and other countries. Additionally, a massive exodus of Chinese sellers could pose risks for Amazon, and other countries' consumption capacity is hard to compare with the US, potentially leading to more intense price competition for Chinese exporters and a decline in global profitability.
Chinese e-commerce platforms Temu and Shein had planned to expand into the Indonesian market and were even listed on Apple and Google app stores in Indonesia. However, the Indonesian government intervened directly and banned their operations in the country due to concerns that their business model could impact local small and medium enterprises.These platforms sell goods directly from Chinese manufacturers to end consumers without intermediaries, offering low prices that squeeze the survival space of local producers. In the United States, these platforms have become popular due to their prices being significantly below market levels, but the Trump administration's policies pose threats. On one hand, Trump imposed a 145% tariff on Chinese imports; on the other hand, he plans to eliminate the "de minimis exemption policy." This policy allows imported goods valued under $800 to enter duty-free and without customs formalities, helping platforms maintain low prices and gain market share. The total cross-border e-commerce import/export business is valued at CNY 2.63 trillion (approximately IDR 6,039 trillion), and eliminating the de minimis exemption and expanding tariff scope could harm it. It is not only the two major platforms affected by US tariff policies but also Chinese sellers relying on Amazon. The head of the Shenzhen Cross-border E-commerce Association said tariffs have disrupted production and distribution cost structures, making it difficult for many companies to gain a foothold in the US market. Tariffs have also led to customs clearance delays and increased logistics costs. Three-fifths of sellers plan to raise US market prices by 30%, while two-fifths intend to exit the US market entirely. Some sellers plan to sell off inventory, reduce Amazon advertising spending, and raise prices in the US market; others are no longer developing new products, believing that serving the US market from China is no longer viable if the situation remains unchanged, and that relevant manufacturing should be moved to Vietnam, Mexico, and other countries. Additionally, a massive exodus of Chinese sellers could pose risks for Amazon, and other countries' consumption capacity is hard to compare with the US, potentially leading to more intense price competition for Chinese exporters and a decline in global profitability.