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2w ago

U.S. Ends Duty-Free Imports for Chinese Goods, Imposes Steep Tariffs

New trade measures eliminate the de minimis exemption, introducing tariffs of up to 90% on low-value packages, disrupting fast-fashion e-commerce and supply chains.

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The Shein and Temu logos are seen in this illustration taken August 22, 2024. Photo: Reuters

Overview

  • The U.S. government has closed the de minimis exemption, effective May 2, imposing tariffs of 90% of package value or a flat fee starting at $75, rising to $150 after June 1.
  • Chinese e-commerce platforms like Shein, Temu, and TikTok Shop face significant challenges as their U.S. business models relied on duty-free imports under the $800 threshold.
  • TikTok Shop has alerted its U.S. merchants about the changes and is pivoting towards European markets to mitigate the impact of the new tariffs.
  • Supply chain experts warn of operational disruptions, including overwhelmed ports and delays, due to the massive volume of packages now subject to tariffs.
  • Companies are increasingly utilizing AI tools to monitor trade policy changes and adapt strategies in real time to navigate the evolving tariff landscape.