Trump Ends De Minimis Exemption, Imposing 120% Tariff and Causing Price Hikes at Shein and Temu
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The Trump administration has ended the 'de minimis' exemption for small-value packages from China and Hong Kong, effective May 2, 2025. This decision impacts e-commerce platforms like Shein and Temu, which have relied on the loophole to ship goods valued under $800 duty-free to the U.S. The new policy imposes a 120% tariff on the value of the package's contents or a $100 fee per package, set to increase to $200 on June 1. This change is expected to raise prices for American consumers and affect the cost of goods sold by Shein and Temu, with some products already seeing significant price increases due to the 145% tariffs.
Shein has paused its preparations for a London IPO amid the tariff changes, reflecting a strategic reassessment due to the increased costs of doing business in the U.S. The move also pressures other retailers and logistics companies, with some halting sales to U.S. customers or seeking temporary solutions. E-commerce giants like Amazon, Shein, and Temu are feeling the impact, with Shein's prices increasing by about 8% and Temu's by more than doubling in some cases.
The end of the de minimis exemption is part of Trump's broader tariff war with China, aimed at tackling the illegal importation of synthetic opioids like fentanyl. US consumers are expected to face higher prices, while Chinese manufacturers and companies like Zhejiang Maibo, which export to the US, are already feeling the effects. In response, companies like JD.com and Alibaba Group are planning to support exporters by expanding domestic sales channels, amidst concerns over domestic consumption, a sluggish real estate market, and deflation. Logistics firms such as DHL and FedEx, along with online platforms like Etsy and eBay, are also bracing for duties up to 145%.
The Trump administration has closed a tariff loophole on packages from China and Hong Kong with a value of $800 or less. @rebeccajarvis breaks down what you need to know.
💰 New taxes for products exported to #ÉtatsUnis 🇺🇸.
➡️ Starting on Friday, small packages from #Chine 🇨🇳, especially those from e-commerce platforms #Shein and #Temu, will be subject to customs duties of up to 145%
The Trump administration has closed a tariff loophole on packages from China and Hong Kong with a value of $800 or less. @rebeccajarvis breaks down what you need to know.
💰 New taxes for products exported to #ÉtatsUnis 🇺🇸.
➡️ Starting on Friday, small packages from #Chine 🇨🇳, especially those from e-commerce platforms #Shein and #Temu, will be subject to customs duties of up to 145%
