Temu and Shein packages face another Trump tariff hike

Axios

10-04-2025

Packages from the likes of low-cost Chinese retailers Temu and Shein are facing another tariff hike from President Trump.
Why it matters: Imported shipments valued at less than $800 had enjoyed the "de minimis" exemption from added duties, which enabled foreign online retailers like Temu and Shein to sell super-cheap items to American consumers without facing tariffs.
Trump recently moved to close that loophole, and now he's making it even harder for those packages to be sold to American consumers.
Between the lines: The White House on Thursday announced that shipments valued at $800 and sent through the international postal network from China to the U.S. will now face a 120% tariff (or $100 per item from May 2 to June 1, and then $200 per item beginning June 1).
That's up from Tuesday, when he raised it to 90% (or $75 per item on May 2 and $150 per item on June 1).
The move is "to ensure that the imposition of tariffs ... is not circumvented," according to an executive order signed by Trump.
The impact: Higher duties on low-cost goods could make the shipments cost-prohibitive for American consumers, or could force Chinese retailers to source their goods from other countries.
Inside the room: The Trump administration has said it's imposing increased tariffs on China due to China's retaliatory tariffs on the U.S.
Threat level: Critics of the de minimis exemption say it has bludgeoned U.S. businesses, such as fashion retailer Forever 21, which recently began liquidating its U.S. stores after partly blaming the rise of Shein and Temu for its downfall.
"The ability for non-U.S. retailers to sell their products at drastically lower prices to U.S. consumers has significantly impacted the Company's ability to retain its traditional core customer base," Forever 21 co-chief restructuring officer Stephen Coulombe said in a court filing.