Enrique Pérez
WriterConsumer tech and information society editor. Despite my studies in physics, I've been writing about tech, multimedia, the digital economy, legislation, and data protection for over 10 years. Interested in projects that aim to improve society and democratize access to technology.
On Feb. 1, President Donald Trump issued a new executive order imposing a 10% tariff on all Chinese goods. This decision immediately impacted the operations of Temu and Shein, two major Chinese e-commerce platforms. As a result, a unique situation has unfolded.
Tariffs. The introduction of the 10% tariff on Chinese imports is part of Trump’s strategy to increase taxes on countries with which the U.S. trades extensively. He had already raised tariffs by 25% for Canada and Mexico but postponed their implementation for 30 days.
No packages from China. The impact of these tariffs could be significant. In fact, the initial repercussions are already being felt. The U.S. Postal Service just stopped accepting packages from China and Hong Kong, causing chaos among drivers who were trying to deliver them as usual. The Verge reports that private courier companies such as UPS and FedEx hadn’t announced any restrictions at the time.
Service restored. According to CNBC, the USPS resumed accepting packages from China and Hong Kong. In a press release, the USPS said it was “working closely together [with Customs and Border Protection] to implement an effective collection mechanism for the new China tariffs to ensure the least disruption to package delivery.”
The “de minimis” loophole. For years, China’s trade with the U.S. has benefited from an exemption known as “de minimis.” The Latin term indicated that packages valued at less than $800 could enter the U.S. without incurring taxes. Platforms like Shein and Temu have leveraged this exception to offer competitive prices on their products. U.S. companies, such as Amazon, Etsy, and eBay, have also taken advantage of this “loophole.”
The end of the de minimis provision. However, Trump recently eliminated the longstanding exemption. The impact of this decision could be significant. Notably, Customs and Border Protection reported processing more than 1.3 billion de minimis shipments in 2024.
A government report also indicated that Temu and Shein are “likely responsible” for more than 30% of all packages entering the U.S. under this provision, with nearly half of them arriving from China.
The rise of e-commerce and the influx of low-value imports prompted the de minimis threshold to increase from $200 to $800 during the Obama administration in 2016.
Checking all packages. The elimination of the de minimis provision will drastically increase the workload for courier companies and the USPS. They’ll need to check all packages for compliance with the new regulations. In theory, this could lead to significant delays in shipping times, at least initially.
Will Temu and Shein be able to compete? Both platforms have benefited from the de minimis exemption and the absence of current tariffs, enabling them to offer products at prices that are difficult to compete with. In response, Amazon launched a plan with Amazon Haul. The initiative focuses on items priced under $20, although shipments may take one to two weeks. Trump’s recent actions could force Amazon to reevaluate its strategy for this service.
Everything will likely cost more. The tariffs and taxes implemented will probably be passed on to American consumers, resulting in higher prices for all products. According to The Verge, tariffs “are a tax on the person or entity importing the goods, not on the exporter.” A study by the National Bureau of Economic Research highlighted that U.S. citizens with the tightest budgets will be the hardest hit.
A complicated future. Trump’s recent decision will undoubtedly affect the prospects of Temu, Shein, and other Chinese e-commerce platforms operating in the U.S. Many expect price hikes and possibly delays in shipping times. This is bad news for China and for American consumers who have been benefiting from competitively priced Chinese products.
Negative repercussions for Meta and Google. This situation will likely impact the U.S. economy as well. In 2024, Temu invested an estimated $3 billion in online marketing, while Shein has been flooding Instagram with ads for its bargain-priced clothes for years. According to Meta, 10% of its ad revenue came from Chinese companies in 2024. Now, that revenue–which supports several U.S. platforms–could diminish significantly.
Image | Claudio Schwarz
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