US President Donald Trump has imposed a 145% tariff on low-value packages imported from China, affecting online shoppers who rely on cheap goods. The move aims to combat fentanyl smuggling but may lead to higher prices for consumers and economic strain.
The exemption that allowed products under $800 to enter the US tariff-free has been eliminated, impacting the growing market of online shoppers. Online retailers like Shein, Temu, and Etsy are already displaying tariffs on Chinese-made products or advising customers to buy domestically. The logistics industry is also adapting, with UPS introducing a service that shows the full cost of purchases including tariffs.
The economic impact will be felt by small businesses and consumers who rely on cheap imports. Trade analysts predict price hikes and shortages in mid-to-late May as retailers work through their inventory. “You’re going to see some small businesses fail,” said Scott Lincicome, director of general economics at the Cato Institute.
The US imported $66 billion in low-value packages from China in 2023, with 67.4% coming from China and Hong Kong. The move is part of Trump’s trade offensive against Beijing, but it has raised concerns about the impact on American consumers and small businesses.
Source: https://www.politico.com/news/2025/05/02/trump-tariffs-online-chinese-goods-00322654