U.S. President Donald Trump has introduced new tariffs on imports from China, aiming to close a trade exemption that has fueled the rise of Chinese e-commerce giants like Temu and Shein.
Signed on Saturday, the executive orders impose a 10% tariff on Chinese imports, while goods from Canada and Mexico will be taxed at 25%.
However, Canadian energy exports to the U.S. will face a lower 10% tariff. The new measures are set to take effect on Tuesday.
End of the “De Minimis” Loophole
A major target of the tariffs is the “de minimis” rule, which allows foreign companies to ship packages worth less than $800 into the U.S. without paying duties. Originally introduced in the 1930s, the provision has come under fire for enabling Chinese e-commerce platforms to avoid import taxes and sell products at ultra-low prices—such as $3 shoes and $15 smartwatches.
With de minimis shipments skyrocketing from 139 million in 2015 to over 1.3 billion in 2024, lawmakers argue the rule has been exploited. The Biden administration had previously taken steps to tighten enforcement, citing concerns over unfair competition and inadequate product safety checks.
Impact on Temu, Shein & U.S. Retailers
The end of de minimis is expected to significantly impact Chinese fast-fashion and e-commerce platforms that rely on low-cost, direct-to-consumer shipping. Companies like Temu, Shein, and AliExpress may face higher costs, potentially leading to price increases for American consumers.
In response, these platforms have already begun adapting. Temu has started onboarding U.S.-based sellers with local inventory, while Shein has expanded its supply chain with distribution centers in the U.S.
Meanwhile, American retailers like Amazon, eBay, and Etsy may benefit from the policy shift. Amazon, which has long facilitated Chinese manufacturers selling to U.S. customers, has also reportedly leveraged the de minimis rule for its Haul outlet—a budget marketplace competing with Temu and Shein.
While representatives from Temu, Shein, and Alibaba have yet to comment on the new tariffs, Shein has previously expressed support for de minimis reforms and emphasized its commitment to import compliance.
As these tariffs take effect, they could reshape the landscape of online shopping in the U.S., altering global e-commerce dynamics and intensifying competition among retailers.
