US Air Freight Tax-Included Small Parcel is a New Paradigm for Cross-Border Logistics Amidst Tariff Storms.Why?

I. The Historical Impact and Current Dilemma of Trump’s Tariff Policies

Since 2018, the Trump administration launched a tariff war against China, imposing an additional 10%-25% tariff on Chinese goods exported to the US through Section 301. This measure covered a full range of products, from industrial equipment to consumer goods. In February 2025, Trump signed an executive order, adding a 20% tariff on all Chinese goods and eliminating the duty-free policy for parcels valued under $800, which led to a sharp increase in costs for cross-border e-commerce sellers.

For instance, a auto parts and motorcycle accessories seller faced a 15% cost pressure due to tariff adjustments and had to cut 5% of their profit margin to maintain price competitiveness. More severely, the US Customs plans to increase the inspection rate of parcels valued under $800 from 5% to 40% starting from May 2nd. This will extend the customs clearance time by 3-5 days and is expected to increase the return rate by 20%.

This policy directly hit cross-border e-commerce relying on the T86 customs clearance model. Previously, parcels valued under $800 could go through a simplified process for quick customs clearance. In 2024, 1 billion Chinese parcels entered the US through this model. However, after the new policy took effect, these parcels need to pay tariffs under the general trade model. With the additional 20% punitive tariff, the comprehensive tax rate for some goods, such as lithium batteries, is as high as 48.4%. Take the Temu platform as an example, the tariff cost of a $40 product will increase from 0% to 27%, significantly weakening its price advantage.

II. The Disruptive Value of US Air Freight Tax-Included Small Parcel Services

In the face of this tariff storm, US air freight tax-included small parcel services have demonstrated unique survival wisdom:

A. Double-Clearance and Tax-Included: A Nuclear Weapon for Cost Control

Specialized freight service providers integrate resources to offer a one-stop service that covers “export declaration in China + import customs clearance in the US + tariff payment on behalf of the client.” For example, a logistics company charges a comprehensive tariff of 25% of the declared value for non-textile clothing, including service fees for tariff payment. This can save sellers more than 30% of compliance costs compared to handling it on their own. This model is especially suitable for goods with a unit price between $50 and $800, preventing profit inversion caused by excessive tariffs.

B. The Time Efficiency Revolution: A Lifeline within 6 – 12 Business Days

Air freight tax-included services combine “direct flights + fast customs clearance,” ensuring delivery within 6 – 12 business days from pickup to receipt. Take a service provider in Guangzhou as an example, goods reach Hong Kong the next day via Hong Kong-China Express, then arrive in the US within 3 days by direct flight, and finally are delivered by local trucks. Compared with the 30 – 40-day cycle of sea freight, air freight enables sellers to respond quickly to market demands. Especially during promotional periods like Black Friday and Cyber Monday, it allows them to seize 30% more of the sales window.

C. Category Inclusiveness: A Way Out for Battery-Containing and Counterfeit Goods

These services support the transportation of general goods, battery-containing items (including built-in batteries), pure battery products (such as lithium batteries), and counterfeit goods (F-brand products). For example, a cross-border e-commerce company transports 50,000 pieces of counterfeit clothing monthly through these services, reducing inspection risks by relying on the strategy of “multiple batches, small quantities.” However, it should be noted that F-brand products carry legal risks. The US Customs has increased penalties for intellectual property infringement, and the number of seized parcels due to infringement increased by 45% in 2024.

III. The Deep Logic Behind the $800 Value Limit

The limit of goods valued no higher than $800 essentially represents a balance the US strikes between tariff policies and the consumer market:

A. The Political Economy of the Duty-Free Threshold

The US set the $800 limit as the “minimum” duty-free amount, considering both administrative efficiency (the high marginal cost of handling small parcels) and the need to ease inflation pressure on low-income consumers. If the duty-free policy were completely abolished, the US CPI might rise by 0.3 – 0.5 percentage points. But this policy has a dual nature for Chinese sellers: on one hand, it reduces the tariff cost for low-value goods; on the other hand, it restricts the profit margin of high-unit-price products.

B. The Boundary Between Compliance and Risk

Freight service providers sometimes split large orders to avoid the value limit. For example, an order worth $1500 is divided into two $800 parcels. However, this operation risks being recognized as “intentional undervaluation” by the customs, which may result in fines or goods confiscation. Therefore, sellers need to find a balance between compliance and cost, such as choosing a combination of “$800 goods + a small amount of high-value items” to enjoy duty-free benefits while ensuring profit per item.

IV. Strategic Significance Under Current Tariff Policies

A. A Key Pillar for Supply Chain Reconstruction

Air freight tax-included small parcels are reshaping the logistics landscape of cross-border e-commerce. For small and medium-sized sellers, these services replace traditional postal small parcels, becoming a new carrier for the “ants moving house” model. For large sellers, these services complement overseas warehouses – high-turnover goods are restocked quickly via air freight, while long-tail products are stored in overseas warehouses to reduce logistics costs. For example, a 3C brand sends mobile phone accessories directly through these services, while pre-stocking whole machine components in an overseas warehouse in Los Angeles, reducing logistics costs by 18%.

B. A Moat for Avoiding Policy Risks

Amidst the frequent changes in tariff policies, the “tax-included” feature of these services serves as a risk hedging tool. For example, when Trump announced an additional 20% tariff, service providers could lock in costs by adjusting prices, while sellers using traditional logistics models had to bear the risk of fluctuating tax rates on their own. In addition, the ability of service providers to predict policy trends (such as early preparation for FBA first-mile tax-included services) helps sellers avoid compliance risks.

C. A Decisive Factor in Market Competition

Air freight tax-included small parcels are rewriting the rules of cross-border e-commerce. Take SHEIN as an example, it controls the clothing transportation cost at 12% of the selling price through these services. Combined with a flexible supply chain, it achieves “7-day bestseller” rapid iteration, while traditional fast fashion brands have a logistics cost accounting for as high as 25%. This efficiency advantage enables Chinese sellers to occupy more than 60% of the market share on platforms like Amazon and Temu.

V. Future Trends and Challenges

A. Coping with Policy Uncertainty

The US Congress is still discussing further tightening of the $800 duty-free policy, such as linking the duty-free amount to the tariff policies of trading partners. Sellers need to establish a “multi-channel parallel” logistics strategy, such as simultaneously deploying air freight tax-included services, overseas warehouses, and third-country transshipment.

B. The New Battlefield of Technological Empowerment

Freight service providers are introducing technologies like AI for tariff policy prediction and blockchain for customs clearance tracking. For example, a service provider reduced the inspection rate of F-brand goods from 40% to 15% by analyzing the inspection patterns of the US Customs through big data.

C. Balancing Compliance and Innovation

The transportation of battery-containing and pure battery goods needs to comply with requirements such as UN38.3 certification and MSDS reports. For F-brand goods, “neutral packaging + vague declaration” is used to reduce risks. Sellers should choose service providers with complete qualifications to avoid supply chain disruptions caused by violations.

Conclusion

US air freight tax-included small parcels are not only a technological innovation in cross-border logistics but also a survival channel opened by Chinese sellers amidst trade barriers. With its 6 – 12 business days delivery time, $800 duty-free limit, and the ability to accommodate sensitive goods, it has redefined the competition rules of cross-border e-commerce. Under the shadow of Trump’s tariff policies, this “Air Silk Road” is becoming a strategic fulcrum for Chinese goods to penetrate the US market. The supply chain wisdom and compliance innovation behind it will continue to influence the future pattern of global trade.