The Trump administration’s plan to impose steep fees on packages from China will deal a significant blow to Chinese e-commerce giants like Shein and Temu, which have become popular among American consumers.
Shein and Temu offer cheap products with wide selections, siphoning consumers away from dollar stores and other discount retailers. However, the Trump administration’s plan to end a trade loophole that enabled the delivery of ultralow-cost goods from Chinese factories without duties will add fees to packages valued at or under $800.
Starting May 2, packages from Shein and Temu will face tariffs equivalent to 120% of their value or a fee of $100 per package. The fee increases to $200 in June. Items shipped through other carriers, like UPS, will face tariffs as high as 145% of the value of the goods.
This change is expected to affect American consumers who have become reliant on these e-commerce sites for affordable products. Many are posting anxiously on social media about the upcoming changes and how they plan to adapt.
Experts say that companies like Shein and Temu will have to find new ways to justify their prices, as the cheap products they offer rely heavily on shipping benefits. The impact of this change could be felt across the industry, with some analysts predicting a decline in sales for these e-commerce sites.
Lawmakers and industry groups have accused Shein and Temu of undercutting American manufacturers and importing counterfeit items. Both companies have also been criticized for fueling excessive consumption.
Source: https://www.nytimes.com/2025/04/16/business/tariffs-china-shein-temu.html