If you’re a regular shopper on Temu or Shein, brace yourself: those ultra-cheap orders may soon cost up to 30% more. The reason? Former President Donald Trump’s sweeping tariff crackdown is back — and this time, it’s hitting where it hurts: low-value imports from China.
A new report from House Republicans reveals that nearly half of all “de minimis” shipments entering the U.S. come from China, with Temu and Shein accounting for over a third. These companies have flourished under a decades-old rule that exempts items under $800 from import taxes.
What Is the De Minimis Rule—and Why It’s Ending
The de minimis rule was designed to speed up customs processing for low-value goods. It allowed everyday shoppers to purchase single items under $800 from overseas without paying any tariffs.
Here’s how it worked:
- A big U.S. retailer importing 10,000 jackets from China would pay steep import duties
- But a Temu or Shein shopper ordering a $20 jacket got it tax-free
This loophole created a massive pricing advantage for Chinese sellers, who could bypass traditional tax structures while offering eye-popping discounts to U.S. consumers.
Trump’s Crackdown: New Duties and Fees on the Horizon
In February, Trump repealed the de minimis exemption. The sudden change overwhelmed Customs and Border Protection (CBP) and caused the U.S. Postal Service to temporarily halt shipments from China and Hong Kong. The rule was reinstated briefly, but not for long.
Now, with systems in place, the White House has confirmed the new tariffs will proceed. Key changes include:
- A 30% duty on the item’s value
- Or a flat $25 fee per item, increasing to $50 after June 1
These new import taxes could skyrocket prices for shoppers on Temu, Shein, and even Amazon’s new Haul platform, which sells similar budget-friendly goods from overseas.
Billions Avoided—But Not for Long
According to the Peterson Institute for International Economics, these platforms may have avoided billions in tariffs over the years. Since 2015, low-value imports surged from $139 million to $1.36 billion in 2024 alone — totaling an estimated $66 billion in de minimis-based shipments.
This explosive growth made Temu and Shein e-commerce giants, but now the party may be over.
Will Shoppers Stick Around?
The big question now is whether U.S. consumers will remain loyal to these platforms if prices rise significantly. The apps built their massive user bases on one promise: shockingly low prices. If that disappears, will their appeal vanish too?
Only time will tell whether Trump’s tariffs will reshape global e-commerce, or if Temu and Shein will find creative workarounds to stay competitive.
