Overview

• President Trump has implemented tariffs of up to 125% on Chinese imports, with a 90% duty on low-value packages set to take effect after the de minimis exemption ends on May 2, 2025.
• The elimination of the de minimis exemption means packages valued under $800 from China will no longer be duty-free, significantly increasing import costs for retailers like Shein and Temu.
• Fast-fashion companies are responding by diversifying their sourcing away from China and building U.S.-based infrastructure to mitigate rising tariffs and potential supply chain disruptions.
• Experts predict higher prices and fewer product options for U.S. consumers as companies adjust to the new trade policies, potentially altering shopping habits.
• The White House describes these measures as part of a broader strategy to address trade imbalances and counter deceptive practices by Chinese shippers.