Former U.S. President Donald Trump has imposed new tariffs on China, Canada, and Mexico, targeting a trade exemption that has fueled the rapid rise of Chinese e-commerce giants such as Temu and Shein.
Signed on Saturday, the executive orders impose a 10% tariff on Chinese imports, while Canadian and Mexican goods face a 25% tax. Canadian energy exports to the U.S. will have a lower 10% tariff. The new duties are set to take effect on Tuesday.
End of the “De Minimis” advantage
A key provision affected by the new tariffs is the “de minimis” rule, which allows foreign exporters to ship packages worth less than $800 into the U.S. duty-free. Originally introduced in the 1930s, de minimis has recently drawn criticism for enabling Chinese e-commerce platforms to bypass import duties and offer ultra-low prices on products like $3 shoes and $15 smartwatches.
With more than 1.3 billion de minimis shipments processed in 2024—up from 139 million in 2015—lawmakers and officials argue that the provision is being exploited. The Biden administration previously took steps to curb its misuse, citing unfair competition and lax product safety checks.
Impact on Temu, Shein & U.S. retailers
The end of de minimis is expected to hit Chinese fast-fashion and e-commerce platforms hard. Companies like Temu, Shein, and AliExpress, which rely on cheap, direct-to-consumer shipping, will now face additional costs, potentially driving up prices for American consumers.
Both Temu and Shein have already been adjusting their strategies in response. Temu has begun onboarding U.S.-based sellers with local inventory, while Shein has expanded its supply chain with distribution centres in the U.S.
Meanwhile, U.S.-based retailers such as Amazon, eBay, and Etsy may benefit from the shift. Amazon, which has long facilitated Chinese manufacturers selling to American customers, is also reported to use 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 respond to the tariff announcement, Shein has previously stated its commitment to import compliance and has supported efforts to reform de minimis.
As the new tariffs take effect, the landscape of online shopping in the U.S. could undergo a major transformation, potentially reshaping global e-commerce dynamics.
