Daily Cross-Border E-Commerce Briefing | May 15, 2025

1. US–China 90-Day Tariff Truce Spurs Pre-Peak Stockpiling
  • Following a 90-day truce in the US-China trade war, businesses are rushing to stockpile goods for Black Friday and Christmas, leading to anticipated swings in shipping demand. The ceasefire, announced in May 2025, temporarily reduces US tariffs on Chinese imports from 145% to 30%, prompting a surge in imports before the truce potentially expires on August 10. Initially, a sharp decline in container shipments resulted from President Trump’s April tariff announcements, causing nearly 400,000 fewer container bookings from Asia to North America. Analysts now expect a rapid increase in cargo flow, potentially stressing port capacities and causing equipment shortages. Freightos, a logistics hub, predicts higher container rates and potential delays, although they may stay below last year’s peak. Despite the truce, US tariffs remain significantly above pre-April levels, leaving the extent of frontloading uncertain. Some US retailers had already increased stockpiles following Trump’s election, with import volumes up 11% from the previous year. Revolution Beauty, for example, reported benefits from having pre-stocked Chinese-origin goods in the US. Overall, the shipping industry faces a volatile peak season akin to pandemic-era disruptions.
    Source: Financial Times, Published on: May 14, 2025
2. De Minimis Duty Cut Gives Parcels 54% Relief
  • The United States has significantly reduced the "de minimis" tariff on low-value shipments from China, cutting rates from 120% to 54% for items valued under $800 and to 30% for commercial deliveries. This follows a 90-day easing of mutual tariffs agreed between the U.S. and China, aiming to de-escalate trade tensions. The new tariff policy offers partial relief to major Chinese e-commerce platforms such as Shein and Temu, which rely heavily on direct-to-consumer shipping to the U.S. under the de minimis threshold. The Trump administration's changes include cancelling a planned fee increase and implementing targeted duties, including a 20% fee linked to the U.S. fentanyl crisis. Despite reductions, trade challenges continue, especially for certain goods like medical supplies still under high tariffs. Industry experts say collection issues remain, especially with the U.S. Postal Service not equipped to manage duties. The adjustment may mark the end of the boom in cross-border Chinese e-commerce shipments benefitting from earlier de minimis exemptions. Shein may still prioritize speed over cost by using air freight despite high tariffs. The reforms address longstanding criticisms that the de minimis rule allows tariff evasion and drug entry while reshaping U.S.-China trade dynamics.
    Source: Reuters, Published on: May 14, 2025
3. Amazon Re-Enlists FedEx for Oversized Deliveries
  • Amazon has struck a significant multi-year delivery deal with FedEx, marking a renewed partnership nearly six years after the companies ended their prior domestic shipping agreement. FedEx will now handle delivery of large packages to Amazon's residential customers, reflecting its broader strategy to enhance its e-commerce network capabilities. Industry experts suggest FedEx may offer more cost-effective solutions than UPS, which recently announced it would reduce its Amazon shipping volume by more than half by late 2026 due to profitability concerns. UPS is also cutting 20,000 jobs and closing 73 facilities, underscoring mounting financial pressures and disruptions in global trade. Although Amazon states the FedEx deal isn't a direct replacement for UPS services, it addresses a gap in long-distance large-package deliveries. Additionally, the article highlights various lesser-known Amazon Prime benefits, including Prime Try Before You Buy, Amazon Photos, Prime Reading, Prime Gaming, and others, aimed at enhancing the value of Prime membership.
    Source: The Sun, Published on: May 15, 2025
4. FedEx Fuel Surcharge Climbs to 29.6%
  • Effective May 14–20, the surcharge affects all LTL/TL quotes; merchants should sync rate tables to avoid margin erosion.
    Source: FedEx, Published on: May 14, 2025
5. Stripe Automates VAT in Five More African Countries
  • Stripe has announced a significant expansion of its tax automation features across five African countries: Benin, Burkina Faso, Cameroon, Cape Verde, and Ethiopia. This move aims to simplify compliance for businesses operating in these regions by automating VAT calculations and reporting, thereby reducing administrative burdens and potential errors.
    Source: Techpression, Published on: May 15, 2025
6. PayPal Launches “Complete Payments” in Singapore
  • PayPal has launched its "Complete Payments" solution for all businesses in Singapore. This full-stack payments platform is tailored for small and medium-sized enterprises, offering a seamless integration of various payment methods, including credit cards, debit cards, and alternative payment options. The initiative aims to enhance the digital payment experience for merchants and customers alike in the Singaporean market.
    Source: Yahoo Finance, Published on: May 15, 2025
7. Google Ads Reporting Outage Continues
  • Advertisers face delayed metrics as engineers work on a fix; API data remains partially functional.
    Source: Google Ads Status, Published on: May 14, 2025
8. Shopify Adds Flat-Rate Split Shipping & Capital Germany
  • Shopify has introduced a new feature that allows customers to be charged a single flat shipping rate when orders are fulfilled from multiple locations within the same location group. Additionally, Shopify Capital is officially expanding to EMEA with its first country launch in Germany, providing merchants with access to funding to grow their businesses.
    Source: Shopify Changelog, Published on: May 14, 2025
9. NOYB Threatens Meta with AI-Data Lawsuit
  • Austrian advocacy group NOYB will seek an injunction against Meta Platforms, it said on Wednesday, that could lead to substantial claims if the tech giant goes ahead with plans to use Europeans' personal data to train its AI models. Meta rejects the advocacy group's arguments and has cited legitimate interest under EU privacy rules. Campaigners say damage claims could be many billions of euros.
    Source: Reuters, Published on: May 14, 2025

Strategic Recommendations

  • Duty-Paid Checkout: Display landed costs and split stock across U.S. coasts to capitalize on the 90-day tariff window.
  • Big-Bulky Advantage: Shift heavy SKUs to FedEx’s large-parcel network for cheaper last-mile delivery.
  • Dynamic Fuel Surcharge: Sync FedEx tables weekly while locking in trucking rates during the diesel dip.
  • Payment Conversion Boost: Enable Apple Pay with PayPal and Stripe Tax to simplify VAT in Africa.
  • Ad Risk Mitigation: Diversify spend to Meta Reels and TikTok Shop while Google Ads metrics lag.

Conclusion

  • A rare duty reprieve, falling fuel costs, and fresh platform tools present a short-term profit window for agile independent sellers.
  • Logistics automation, diversified ads, and strict data compliance will be decisive advantages heading into Q3 2025.