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4mo ago

U.S. Ends Duty-Free Imports from China, Triggering 145% Tariffs

The removal of the de minimis exemption disrupts e-commerce, forces supply chain overhauls, and raises prices for American consumers.

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Employees produce garments for the online Chinese e-commerce company Temu at a clothing factory in Guangzhou, in southern China's Guangdong province on April 16, 2025. China told Washington on April 16 to "stop threatening and blackmailing" after US President Donald Trump said it was up to Beijing to come to the negotiating table to discuss ending their trade war. Trump has slapped new tariffs on friend and foe but has reserved his heaviest blows for China, with 145 percent on many Chinese imports even as Beijing has retaliated with levies on US goods of 125 percent.
E-commerce giant Temu is ceasing direct Chinese exports to the US.

Overview

  • As of May 2, 2025, packages valued under $800 from China and Hong Kong are subject to tariffs of up to 145%, ending decades of duty-free treatment.
  • Major e-commerce platforms like Temu and Shein have shifted to U.S.-based fulfillment models to avoid the new tariffs, with Temu halting direct shipments from China entirely.
  • Retailers such as Space NK and Understance have paused U.S. sales, citing prohibitive costs and logistical challenges under the new tariff rules.
  • American consumers are facing price hikes, with some retailers like Oh Polly increasing U.S. prices by 20% to offset the tariffs.
  • The White House justifies the policy as a measure to combat fentanyl smuggling and support domestic industries, though critics warn of inflation and economic strain.