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3w ago

Trump Ends Tariff Exemption for Chinese Goods, Targeting Shein and Temu

The de minimis exemption, which allowed duty-free imports under $800, will end May 2, introducing new tariffs and compliance measures.

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U.S. President Donald Trump waves as he walks before departing for Florida from the South Lawn at the White House in Washington, D.C., U.S., March 28, 2025. REUTERS/Evelyn Hockstein/File Photo
A worker makes clothes at a garment factory that supplies Shein in China's southern Guangdong province in 2022. Photo: Jade Gao / AFP via Getty Images
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Overview

  • President Trump signed an executive order officially ending the de minimis tariff exemption for goods under $800 from China, effective May 2, 2025.
  • New duties include a 30% tariff or $25 per item on low-value shipments, rising to $50 per item after June 1, 2025, according to the White House.
  • The Commerce Department has implemented systems to collect tariff revenue on low-value international shipments, marking a shift in U.S.-China trade policy.
  • Critics argue the exemption allowed foreign retailers like Shein and Temu to undercut U.S. businesses, with Forever 21 citing this as a factor in its U.S. store closures.
  • Opponents, including the Cato Institute, warn the policy will raise costs for American consumers and increase shipping times for cross-border e-commerce.