Trade Tariff Adjustments Affect Shein and Temu
The Trump administration has decided to lower tariffs on affordable Chinese products from platforms like Shein and Temu to 30%. This marks a significant drop from the previous 145% tariff.
As part of this adjustment, the current tariff comprises a 10% “mutual” duty targeted at China, alongside a 20% tax associated with the fentanyl trafficking crisis. A flat rate of $100 per package also continues to apply.
Following trade discussions held in Switzerland recently, China and the US reached a temporary agreement—a 90-day ceasefire. The US slashed Chinese import tariffs from 145% to 30%, prompting China to reciprocate by reducing its tariffs on US goods from 125% to 10%.
This week, President Donald Trump further lowered the so-called “minimum” tariffs on less valuable packages, reducing them from 120% to 54%.
On February 47th, Trump eliminated the De Minimis exemption, a longstanding trade loophole that Shein and Temu have utilized to bypass customs on packages valued under $800 that are tax-free in the US.
Various shipping companies, such as FedEx and DHL, have different regulations for packages they handle for Temu and Shein, according to reports. However, most of China’s imports are still subject to much higher taxation from earlier trade policies or national security reviews.
For items under the $800 threshold, the exemption allows for a $100 flat rate, as reported.
Meanwhile, both political parties are calling for more stringent customs checks, criticizing the loophole that permits potentially hazardous goods to enter the US.
Trump has been outspoken about trade regulations as he welcomes fentanyl shipments and witnesses the expansion of Chinese fashion retail.
Nomura estimates that in 2024, China exported $240 billion worth of goods taking advantage of the De Minimis exemption.
“Sellers might be taking a wait-and-see approach, but it’s fair to say the heyday for small package deliveries from China to the US is over,” reports indicate.
US consumers are reportedly shifting away from Chinese online shopping platforms, opting instead for American retailers and department stores, according to sources.
