Trump’s tariff plan includes a potential death blow to cheap Chinese e-commerce
1 min read
Summary
On 2 May, packages coming from China and Hong Kong will be subject to a 30% fee on packages worth less than 800ora25 fee per postal item, according to an executive order signed this week.
The US had intended to scrap a long-standing exemption on low-value packages from China last year, but was forced to pause the move due to teething issues.
This is likely to add to the costs of US consumers who buy items from Chinese retailers such as Shein and Temu.
The exemption previously afforded to such packages not only spared consumers from additional costs, but also allowed retailers to shape their business models around shipping directly to US consumers in small batches, avoiding duties.
It is worth noting that duties on larger shipments worth over $800 have been in place for some time and are set to remain.