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Trump’s decision to de-escalate his trade war with China means lower tariffs for Temu and Shein, but the import costs are still high.
Effective May 2, the US started tariffing imports from these companies at a whopping 120% rate. But on Monday, the Trump administration lowered the rate to 54% alongside an overall decrease in Chinese tariffs as trade talks continue.
The 54% duty applies to imports previously covered by the De Minimis Tax Exemption. That loophole allowed shipments valued at under $800 to enter the country duty-free, helping Temu, Shein, and AliExpress sell cheap Chinese goods to US consumers. But since taking office, Trump moved to end the De Minimis Tax Exemption for Chinese imports, and imposed a duty that initially started at 30% before increasing to 90% and then 120%.
Temu briefly displayed import fees at checkout, but many customers balked at paying more than double. It later blocked users from buying goods directly from China and is currently only showing customers goods based in “local” US warehouses that have stocked up on inventory. The new policy effectively sidesteps Trump’s tariffs, but it's only a matter of time before warehouses run out of inventory, forcing them to import new items that’ll fall under the tariffs.
Even with the reduction, a 54% tariff is still a pretty hefty fee. Under Trump’s policy, postal carriers can also choose to pay a $100 per-item tariff rate versus a percentage. The White House was going to increase that to $200 in June, but has now nixed that idea.
Temu didn't immediately respond to a request for comment.