Within the framework of a global commercial conflict, the United States decided to end a tariff exemption for packages from China and Hong Kong with a value of up to US $ 800, a mechanism that has allowed the expansion of Chinese giant of electronic commerce in the United States, such as Temu and Shein.
In the opinion of Mario Porres, founder and manager of the Guatemaladigital.com electronic commerce platform, Trump tariffs are reflected in scarcity and the increase in prices in many of the products that the country imports through parcels.
For example, he explained that this industry in Guatemala operates, mostly, importing from the USA produced in China, so the tariff costs that they pay in imports from the Asian country are transferred to the final customer.
Porres added that this measure applies to Guatemala as well as to any country in the world, but China is the main affected by the amount exported to the US in that modality.
Therefore, the consumer in Guatemala affects not having the same low prices that previously offered Temu and Shein, since by paying more taxes in the US, these costs are transferred to the Guatemalan consumer.
“Here it will be interesting to see how Temu’s attempts evolve to venture into Guatemala, where, unlike the US, there are no tax incentives for bringing less than US $ 800 per package or there is a cheap parcel from China,” Porres emphasized.
Jacobo Pérez, electronic commerce and communication consultant, considered that the elimination of that exemption makes any shipment, however small, incur tariffs, and that extra cost has inevitably moved to the Guatemalans.
This will affect both individual consumers who pay the sale price and local resellers that depend on these products. “This measure will affect those small businesses that are bringing products from China, in this case products from various places,” Pérez said.
Two scenarios
Byron Ardón, General Manager of Codominter, states that, in practical terms, the executive order signed by President Trump is not clear if the suspension of the exemption for the parcel of less than US $ 800 applies to everyone or if it is exclusive to China, Hong Kong or Asia. If tariffs are left without exemption to everyone, they will apply to shipments that arrive from any country.
Asked on the stage when the application of the tariff is only for shipments from China, and the buyer is in Guatemala, he said that there are two scenarios. In addition, it should be taken into account that for imports from China to the United States tariffs are 145%.
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The first scenario refers to the fact that the merchandise comes from China, between and is nationalized in the United States, because, for example, it had to go through some type of process before being dispatched to Guatemala.
In this case, the importer in the United States will have to pay the tariff applied by the government to enter that country, and by default, that position will be added to the price of the product, so it will have a higher value to bring it to Guatemala; That is, if I bought it before, it will now acquire it with 145% more.
The second scenario occurs if the merchandise enters an area of free zone or free zone in the United States, allowing the product to enter customs transit and not pay import taxes in that country. It could be that it enters a special tax regime so that it is processed and then dispatched to where it is desired. In this case, the product would maintain its price as if it had been bought in Europe, Asia or other origin.
The consumer should buy directly from China through the available pages or platforms. It may be that the inventory is in a free zone or dispatched it directly from China, and thus get the best price.
Because, he insisted, if he was nationalized in the United States and then dispatches Guatemala or other countries, the product value will already include the new tariff tax to China.
Analyze distribution centers
The consumer must take into account the origin of the purchase, that is, identify from where it is more convenient to acquire the product.
He explains, for example, that on the purchase platforms (such as Temu or Shein) the consumer can see where he will come or where the product will be dispatched, also considering the region.
On the platforms the distribution centers by regions are established. For example, in the case of Temu, the center that covers Guatemala is specifically that of the region of Mexico. It also has another established in South America.
He also explains that from Mexico it is distributed to Central America and, many times, from Mexico to the United States, although Temu has its own distribution center in that North American country.
Regarding the products that are brought from China, which pass through the United States and that the tariff can have added, consider that the most susceptible are electronic. Among these: mobile phones, touch screens, tablets, television screens, radios, mainly manufactured in that Asian country for US companies; There are also other Europeans that maintain a lot of inventory in the United States.
If an inventory is already nationalized by the minimum requirements of the US government, this type of products is more likely to pass through the US territory and could be more impacted in terms of price.
It also emphasizes that some companies use Panama as a reception or distribution center, and from there they distribute to the logistics chain, although for now it is for wholesale businesses. But he thinks they could seek to settle in those places also for retail sales.
“Because when this situation occurs, in which the United States is complicating and putting so many barriers to international electronic commerce, and was used as a collection and distribution center, they can think of other areas such as Panama, which has a free zone, with more flexible laws and that can be used to distribute from there. There is also Mexico,” he added.
“That is another trend that we can be seeing very soon: the change of the reception centers of these large electronic commerce companies and then distribute them from there,” he said.
Recommendations for buyers and vendors
Porres added that, in the current context of such high tariffs – which can virtually qualify as a commercial embargo that makes trade between China and the United States unfeasible – hopes that the forces act by nature, either by braking the initiative of the Trump administration or encouraging the package business from China, “which we see less likely because of how little prepared this ecosystem would be,” he emphasized.
Among the recommendations, Porres shares the possibility of having several origins to import products, avoid handling large lots, orienting daily import cycles to be dynamic to uncertainty, cover extensive catalogs with diverse inventories to offer a good range to the consumer and market products from distributors and local shops.
In that line, Pérez adds that these types of measures will continue to appear, but the important thing is to have the context to anticipate and define strategies.
For example, he mentioned strengthening the capacities of local logistics.
Also, compete by value and not only for price. “They are one of the things that companies should reinforce and turn to see local products.”
In addition, he considered it important to generate loyalty with the client, and, finally, stay updated with the commercial policies of those countries that will impact the supply chain, given that electronic commerce does not depend only on having a good product, but also on understanding the global map of the supply, the needs of the consumer and what is being moved in the market.
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“You have to adapt intelligence, have a lot of data and information to generate alliances,” Pérez concluded.
Ardón added that it is necessary to verify on the platform from where he will be dispatched or his product will come; This will help you get better price if it comes directly, than if you pass by the US.
You can also buy to have a delivery from the region that corresponds to Guatemala, so that the price does not impact.
“Like every good buyer, I must review on all the available platforms where I get the best price. It’s about doing a good search for my product, the quality I want and the price I am looking for,” he added.
Finally, it is possible that the platforms look for other distribution countries, such as Panama, he said.