Merchants warn that margins will be squeezed, consumer prices may rise, and firms may shift markets as compliance costs and customs hits bite cross-border trade.

Three years into the cross-border e-commerce trade, Shenzhen-based seller Xiong Hao is grappling with the fallout from Washington’s decision to scrap duty-free treatment for small parcels – and now the European Union looks to deliver the next blow. “It’s getting harder and harder in the current environment,” said Xiong, who deals in toys and household goods. “Even though small parcels are technically duty-free, the EU already has a lot of miscellaneous taxes.” EU member states have agreed with…

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