Core Viewpoint - The article highlights the shift of foreign trade companies towards domestic sales due to changes in international trade dynamics, particularly the impact of U.S. tariffs, allowing domestic consumers to access high-quality products at lower prices [1][2]. Group 1: Company Strategies - Yida Group, originally focused on foreign trade, has transitioned to building its own brand after being placed on the U.S. entity list due to its use of Xinjiang cotton [2]. - The company has diversified its product offerings from basic white shirts to a wider range including suits and casual wear, responding to domestic consumer preferences [2]. - Ningbo Today Food Co., Ltd. has shifted its focus to the domestic market after U.S. tariffs, launching new products tailored to local tastes [5][6]. Group 2: Market Dynamics - The domestic market presents challenges for foreign trade companies, including the need for flexibility and rapid response to consumer demands, contrasting with the stability of foreign orders [2]. - The price competitiveness of domestic products is evident, with examples such as canned tuna being sold at approximately 80% less than similar products in the U.S. [5]. - Companies are increasingly recognizing that domestic consumers are open to new brands, which allows for greater market opportunities [7]. Group 3: Regulatory and Supportive Environment - Companies like Ningxia Wofu Baier have faced challenges in rebranding and adapting to domestic market requirements, including packaging changes and brand recognition [10][11]. - Local government support, such as subsidies and loan interest reductions, has been crucial for companies transitioning to domestic sales [11]. - The integration of domestic and foreign trade strategies is emphasized, with companies advised to diversify their market presence to mitigate risks associated with reliance on a single market [12][13].

Core Viewpoint - The cancellation of the T86 customs clearance policy by the U.S. government marks a significant shift in global trade dynamics, particularly affecting Chinese cross-border sellers who previously benefited from this simplified customs process [1]. Group 1: T86 Customs Clearance Overview - T86 customs clearance, introduced in 2019, facilitated rapid growth in cross-border packages from China, with 1.36 billion packages processed in 2023, over 30% of which were Chinese goods [1]. - The policy allowed B2C e-commerce packages valued at ≤ $800 to be exempt from tariffs, simplifying the process through electronic declarations and reducing clearance time to 1-3 days [3]. Group 2: Impact of Policy Termination - The cancellation of T86 customs clearance presents multiple challenges for Chinese sellers, including increased customs costs and a significant decline in market competitiveness [5]. - The effective tax rate for Chinese goods will rise to 54% after May 2, with additional tariffs leading to a minimum charge of $25 for packages valued at $50, severely impacting profit margins [6]. Group 3: Strategic Responses - Chinese sellers are advised to build a "threefold moat" by localizing supply chains, enhancing product value, and diversifying market presence [5]. - Companies must adapt to the new regulatory environment by establishing compliance systems, leveraging digital tools for inventory management, and focusing on high-margin products [6]. Group 4: Industry Insights - The end of the T86 policy emphasizes the need for compliance-driven operations to avoid significant penalties and the importance of digital transformation to optimize supply chain efficiency [6]. - Companies should explore emerging markets and utilize multiple platforms to mitigate risks associated with over-reliance on a single market [6].