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2w ago

Trump Ends Duty-Free Imports on Low-Value Chinese Goods, Triggering Price Hikes

The termination of the de minimis exemption introduces steep tariffs on Chinese shipments, reshaping e-commerce pricing and logistics in the U.S.

Shein and Temu app icons are seen in this illustration taken August 22, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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Overview

  • As of May 2, 2025, low-value shipments from China and Hong Kong face tariffs of up to 145% for express carriers or a 120% levy for postal services, with flat fees rising from $100 to $200 in June.
  • Major e-commerce platforms like Shein, Temu, Amazon, and eBay have adjusted prices or shifted to local inventory, while some small retailers like Space NK have ceased U.S. shipments.
  • The de minimis exemption, previously allowing duty-free imports under $800, accounted for 83% of U.S. e-commerce imports in 2022, with over half originating from China.
  • U.S. Customs and Border Protection and major carriers report readiness for enhanced screening and tariff collection, though logistical delays are anticipated due to the high volume of affected shipments.
  • The policy aims to address trade imbalances, protect U.S. manufacturers, and curb the flow of counterfeit goods and illicit substances, including fentanyl precursors.