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UPDATE 4/10: Trump has further increased the tariffs on packages from China that fell under the De Minimis Tax Exemption. The percentage-based tariff is going up from 90% to 120%. Meanwhile, the per-item tariff rate has been set at $100. It'll then increase to $200 on June 1st.
Original story:
It's not just Apple and other huge companies feeling the pain of President Trump's tariffs. Smaller brands and those that specialize in cheap products, like Temu and Shein, will now see their tariffs triple on packages imported from China.
Trump on Tuesday signed an order to further raise tariffs on packages from China valued at less than $800. Such packages previously came into the US duty-free, but last week, Trump said he would end this "De Minimis Tax Exemption" for imports from China and Hong Kong.
At the time, Trump settled on tariffing the packages at "either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025).” But on Tuesday, he tripled the rates ahead of a cumulative 104% tariff rate on most Chinese imports.
The new order is slated to take effect on May 2 and raises tariffs on the packages from 30% to 90% or from $25 per item to $50 per item. On June 1, the per-item tariff rate will then jump from $50 to $150. It’ll be up to postal carriers to decide whether to pay the percentage-based tariff or the item-based duty. But when Trump initially tried to end the De Minimis exemption in February, the extra costs were passed on to consumers.
The policy change threatens to dramatically increase prices for Temu, Shein, and AliExpress, which use Chinese suppliers to offer cheap goods. The policy, combined with the 104% tariffs on China, could also hit Amazon. According to Bloomberg, the e-commerce giant has abruptly canceled orders for multiple products made in China and other Asian markets being targeted by Trump's "reciprocal tariffs."
Temu and Amazon didn’t immediately respond to a request for comment. In the meantime, Temu and AliExpress shoppers expect Trump’s order to kill off business for the platforms unless the US and China reach a trade deal. “Good luck, Americans,” wrote one Reddit user.