Americans love Shein, Temu, and AliExpress for two reasons: cheap prices and fast shopping. But Trump Tariff wars might just change that.
Trump's tariff orders is going to reverse something called the de minimis exemption, which is a rule that allows international exporters to ship packages worth less than $800 inspection-and duty-free into the United States.
But the Trump administration is now removing the provision that is making these packages so cheap and easy to access in the first place.
Just yesterday, Trump announced that he would be enacting a 10% tariff on Chinese imports on top of the wide array of tariffs that were placed on goods from the country during his first term.
Shortly after, the United States Postal Service announced that they would be suspending the acceptance of international parcels from China and Hong Kong until further notice.
The USPS did not provide any reason for the suspension, but said in a statement that the flow of letters would not be affected.
Closing the De Minimis Loophole
The de minimis tax exemption, which allowed Chinese e-commerce giants like Shein and Temu to ship low-cost goods to U.S consumers have faced increased scrutiny in recent years.
For decades, the exemption has allowed buyers to not fill out a tiresome custom paperwork or pay a tariffs on small packages. But for years, the U.S has been trying to tackle this provision, which has proven to be a loophole that has been leveraged on by Chinese companies.
Back in September 2024, the Biden administration announced it was cracking down on what it called abuse of the de minimis exemption, saying that over the past decade shipments increased from 140 million a year to over a billion.
The exponential increase had made it ever more challenging to enforce trade laws and also put a strain on American workers and business upholding US consumer protections laws and combatting the fentanyl trade.
China strikes back with a tariff of their own
In response, China has announced retaliatory tariffs on certain U.S. imports. Beginning Feb. 10, coal and liquefied natural gas (LNG) will be subject to a 15% tariff, while crude oil, agricultural machinery, and large-engine vehicles will face a 10% levy.
Additionally, China has launched an antitrust probe into Google's Android operating system and is scrutinising chipmakers Nvidia and Intel.
How would customers be affected
The de minimis exemption has been the main reason why Chinese goods are so cheap for US customers. According to the research data, the percentage of de minimis imports made in the U.S makes up more than 80% of the total shipments.
During the first Trump administration, consumers bore basically 90-100% of the cost of tariffs. So if that similar dynamic exists, consumers could expect a 10% increase if it comes from China.
But experts are saying that customs are not equipped to handle this level of change, and it could cause other delays.