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.