US President Donald Trump’s trade tariffs on Canada, Mexico, and China will increase costs for many online goods, particularly those shipped directly from Chinese companies like Shein and Temu. The tariffs apply to most US e-commerce imports, affecting over 80% of online purchases.
The tariffs are part of a broader executive order that aims to reduce fentanyl trafficking by limiting the “de minimis” exception, which allows certain low-value packages to be imported without paying tariffs. This provision has been used by many companies, including Shein and Temu, to bypass tariffs and offer cheaper prices.
Critics argue that the de minimis exception has harmed American consumers, particularly lower-income households, who spend more on these types of imports from China. However, supporters say that the tariffs will “level the playing field” for US businesses and help reduce fentanyl trafficking.
The change will also affect official trade data, which had previously excluded low-value packages under the de minimis exception. This means that up to $100 billion of trade may be reported in official statistics, shedding light on the shadow trade.
The impact of the tariffs is expected to be significant, with costs estimated at $11 billion to $13 billion for American consumers. Domestic retailers and producers will benefit from taxing these imports, but lower-income households may bear a disproportionate burden.
Source: https://www.nytimes.com/2025/02/03/us/politics/trump-tariffs-shein-temu-loophole.html