Recent changes in US trade policy have significant implications for American consumers and Chinese online retailers. The removal of the de minimis exemption has led to tariffs on low-value goods from China, which previously could enter the US duty-free. This policy shift, originating from Trump-era tariffs, affects companies like Temu and Shein, which have been compelled to raise their prices by 40 to 100 percent.
Previously, goods under $800 could bypass tariffs, encouraging a surge in imports—1.36 billion packages in the last tax year alone. The closure of this loophole aims to support US manufacturers by leveling the playing field against foreign competition. However, American consumers may face increased costs as these tariffs often exceed the original price of the products.
In response, some Chinese retailers are adapting by shifting to local fulfillment models, relying on US-based sellers to mitigate these tariffs. While this move might stabilize prices for some consumers, it represents a broader adjustment in international trade dynamics. Overall, this change underscores the ongoing economic tensions between the US and China, with significant repercussions for global commerce.
