In a bold and controversial move that could reshape U.S.-China trade relations and significantly impact online shopping in America, President Donald Trump has signed an executive order to raise duties on Chinese small parcel imports to 90%, directly targeting ultra-popular fast-fashion and discount e-commerce platforms Shein and Temu.
The new order takes effect May 2, 2025. This marks the end of the longstanding $800 “de minimis” duty-free exemption for international shipments. Chinese platforms have utilized this loophole to flood the U.S. market with cheap products.
Under the revised policy, any package from China, regardless of its value, will now face a base tariff of 60%. The tariff will increase to 90% on specific goods and platforms. These are deemed to be “strategically non-compliant.” This is according to the executive directive released Tuesday by the White House.
In parallel, per-item duty charges will rise in stages. They will increase from $25 per item currently to $75 starting May 2. Then, they will rise up to $150 per item by June 1.
The order also raises the blanket tariff on all Chinese goods from 34% to 84%. It cites unfair trade practices and alleged data security concerns. The order also highlights the mass exploitation of the U.S. market through loophole-driven shipping models.
Trump’s directive explicitly calls out Chinese-founded e-commerce companies—notably Shein and Temu—for “abusing trade exemptions to undermine U.S. manufacturing and exploit American consumers.”
Shein and Temu rely heavily on the de minimis loophole. They use it to ship directly to American customers. As a result, they have seen explosive growth in the U.S. They offer clothing, tech accessories, and home goods at rock-bottom prices. Shein alone ships thousands of packages daily, most under the $800 threshold—until now, tax-free.
With these tariffs, both companies now face substantial import costs. These costs will likely be passed down to consumers. Consumers may see higher prices or longer delivery windows.
This isn’t the first time Trump has waged a tariff war with China. During his first term, he imposed a series of sweeping tariffs that shook global markets. Many of those were softened or suspended during the Biden administration. However, Trump has consistently promised to restore tariffs. He has even vowed to double down on them if re-elected.
This latest move appears to be part of a broader economic nationalist agenda, with Trump seeking to rein in Chinese influence in American retail and boost domestic manufacturing. The White House argues that these foreign platforms pose “economic and cybersecurity risks” to American consumers and businesses.
“The time has come to level the playing field,” Trump said during the signing ceremony. “We will no longer allow China to manipulate our trade laws, take advantage of our postal system, and dump billions of dollars worth of cheap goods into our economy tax-free.”
Retail industry groups, while praising the intent to protect U.S. manufacturing, have warned of consumer backlash. The National Retail Federation stated that the sudden removal of the de minimis exemption would “raise prices across a wide swath of consumer goods”, affecting millions of low-income shoppers.
Meanwhile, some Democrats and global trade experts caution that this could provoke retaliatory tariffs from Beijing. They warn it may escalate into another trade war. This situation could be similar to the 2018–2020 era.
In 2023, a brief suspension of the same policy by Trump’s administration caused massive port and logistics delays, forcing a reversal within weeks. Officials now claim that logistics have been upgraded to handle the expected surge in taxed imports, though independent analysts remain skeptical.
In an expected but swift rebuke, China’s Ministry of Commerce condemned the executive order, accusing the United States of “politicizing trade and abusing protectionist policies.”
A spokesperson for the Chinese foreign ministry warned that China would consider “all necessary measures to defend the legitimate rights of its enterprises.”
While Beijing has yet to outline specific retaliatory actions, previous rounds of tariff disputes led to tariffs on American agricultural exports, energy products, and tech components.
What It Means for Consumers and the Market
Consumers who have come to rely on the convenience and affordability of Shein and Temu may soon face:
Higher prices for fashion, gadgets, and home goods
Slower shipping times due to enhanced customs checks
Fewer choices, as some sellers may withdraw from the U.S. market entirely
On the flip side, domestic retailers and U.S.-based e-commerce platforms may benefit in the short term, gaining a competitive edge on price.
Experts predict that Amazon, Walmart, and Etsy may capitalize on the gap left by Shein and Temu’s price adjustments, but acknowledge it may take time for them to match the diversity and ultra-low pricing of Chinese platforms.
Outlook: Tariffs as a 2024 Campaign Weapon?
With the 2024 presidential race heating up, Trump’s aggressive tariff policy appears to be both an economic maneuver and political strategy. By targeting Chinese firms and reviving the rhetoric of “America First,” Trump is appealing to his manufacturing and middle-class voter base.
Whether this gamble pays off—or triggers inflationary pressure and global retaliation—remains to be seen.