Core Viewpoint - The U.S. tariff war is significantly impacting cross-border e-commerce, but companies have adapted quickly to mitigate the effects and continue to thrive despite the challenges posed by increased tariffs and the removal of tax exemptions [1][4][20]. Tariff Impact - The U.S. has implemented a base tariff of 30% on Chinese goods, with an effective rate reaching 37% due to additional taxes on specific industries [4][6]. - The cancellation of the $800 tax exemption for small packages has severely affected platforms like Temu and Shein, which relied on low-cost shipping methods [6][8]. Company Responses - Temu has shifted from a fully managed model to a semi-managed one, allowing merchants to handle shipping and storage, while also expanding its operations to Europe and Latin America [8][10]. - Amazon is providing subsidies to retain Chinese sellers, who make up over 50% of its marketplace, and encouraging them to use its overseas warehouses to avoid tariff fluctuations [10][18]. Market Adaptation - Smaller sellers are diversifying their markets to avoid U.S. tariffs, with increased focus on regions like the Middle East, Southeast Asia, and Latin America [10][11]. - Cross-border service providers are becoming essential for smaller sellers, offering solutions for payment processing and compliance across various countries [11][13]. Competitive Advantage - The resilience of cross-border e-commerce is attributed to the strength of Chinese manufacturing, which maintains a competitive edge in cost and quality despite tariff pressures [15][17]. - The comprehensive supply chain in China allows for rapid production and delivery, enabling companies to adapt quickly to market demands [17][20]. Future Outlook - As long as the cost-performance advantage of Chinese products remains, and the cross-border ecosystem continues to improve, opportunities for growth in cross-border e-commerce will persist despite changing tariff policies [20][22].