The US has imposed a 120% duty on Chinese e-commerce shipments under $800, ending duty-free access.

According to the research organization Global Trade and Research Initiative, if banking and customs bottlenecks are promptly resolved and the government provides appropriate export incentives, the US decision to impose a 120 percent import duty on Chinese e-commerce shipments valued under $800, ending their duty-free entry, may create opportunities for Indian online sellers.

The assessment, which was released on Sunday, said that India is well-positioned to bridge the vacuum left by China, especially in customized, small-batch products like handicrafts, fashion, and home goods, given its $5 billion in current exports and more than 100,000 e-commerce businesses.

Chinese e-commerce exports under $800 to the US will no longer be eligible for tax-free entry on May 2 due to a hefty 120% import tariff. According to the article, this action is anticipated to upset Chinese supply networks and provide opportunities for other nations.

US President Donald Trump signed an executive order eliminating the de minimis exception for imports from China and Hong Kong. According to the article, this provision historically benefited Chinese companies like Shein, Temu and Amazon by allowing small goods up to $800 to enter the US duty-free.

According to Ajay Srivastava of the GTRI, India's present trade system is still designed for big, traditional exporters rather than tiny internet merchants; thus, taking advantage of this potential would require immediate improvements.

The report also noted that important export incentives like RoDTEP, Duty Drawback, and the Advance Authorization Scheme do not apply to shipments transported by courier, which is typical in e-commerce. It stated that it is essential to extend similar advantages to shipments made through e-commerce.