US President Donald Trump’s tariffs on China have sent shockwaves through the country’s e-commerce industry, with popular sites like Shein and Temu feeling the pinch. The de minimis exemption, a long-standing shipping loophole, has been reversed, leaving international exporters to pay tariffs on packages worth less than $800.
The exemption allowed Chinese e-commerce sites to ship packages duty-free into the US, making their products extremely cheap for consumers. However, the Trump administration is cracking down on this practice, citing concerns over the economic impact and labor practices in China.
“If you inspect every package, it’s going to raise costs dramatically for consumers,” said Clark Packard, a research fellow at Cato Trade. “It’s going to slow down the reception of goods that were bought.”
The move is likely to affect more than 80% of total US e-commerce shipments, which are currently exempt from tariffs. This could lead to a significant increase in import costs for consumers, with estimates suggesting a 10% rise.
Chinese companies may need to adapt their business models to comply with the new regulations. One possible solution is expanding warehouses in the US or shipping products through other countries like Vietnam. However, this would add extra costs and potentially trickle down to customers.
The impact on American workers and businesses is also being felt, with concerns over the trade imbalance and labor practices in China. Policymakers are already appearing tough on China, and the move could have significant repercussions for the global economy.
As the situation unfolds, consumers can expect to see changes in the way they shop online. With popular sites like Shein and Temu facing increased costs, it’s likely that prices will rise, making these products less competitive. The future of e-commerce in China is uncertain, but one thing is clear: the Trump administration’s move has sent a strong message about its commitment to protecting American workers and businesses.
Source: https://edition.cnn.com/2025/02/05/business/shein-temu-alibaba-china-tariffs-de-minimis/index.html