US Triples China Import Duties for Items Under $800, Pressuring Shein and Temu’s Model

News Analysis

WASHINGTON—The White House, in an April 8 executive order, tripled duties on de minimis or low-value packages from China to 90 percent of their value or at least $75 per item, effective May 2, with rates to rise to $150 after June 1.

The order, “Amendment to Reciprocal Tariffs and Updated Duties as Applied to Low-Value Imports from the People’s Republic of China,” revised President Donald Trump’s April 2 executive order. That earlier order had set duties at 30 percent, or a minimum flat fee of $25 from May 2 and $50 from June 1 for shipments under $800, ending the de minimis exemption.

The latest change will impact Chinese e-commerce giants Shein and Temu, which account for 30 percent of U.S. daily small-parcel imports through China-sourced shipments.

Effective midnight on April 9, the increase counters China’s 34 percent tariff on U.S. goods imposed on April 4.

“The Secretary of Commerce has notified me that adequate systems are now in place to process and collect tariff revenue,” Trump said in the statement, posted on April 2.

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Shein traditionally used China Post and the U.S. Postal Service for low-cost shipping. Its Whitestown, Indiana, distribution center—a 1.8-million-square-foot facility opened in 2023—bulk imports from China for “QuickShip” delivery, and had plans for a 50 percent expansion. Shein Executive Chairman Donald Tang, in a March 2025 analyst call, called import compliance “a top priority,” supporting de minimis reform.

Temu and Shein together comprise about 17 percent of the U.S. discount market—including fast fashion, toys, and consumer goods—according to a Congressional Research Service (CRS) Report.

The report also noted that U.S. Customs and Border Protection estimates that for 2023, total U.S. de minimis imports were 1 billion parcels valued at about $54.5 billion. China reported $18.4 billion in 2023 de minimis exports to the United States, which is about one-third of the $54.5 billion U.S. de minimis.

Shein contracts firms in China to make and ship clothing directly to global consumers. Whether shipped in bulk or mailed as parcels, all Chinese imports are now targeted for tariffs.

Shein’s reliance on Chinese manufacturing could nearly double the cost of a $10 dress, pushing Shein to either raise prices or shrink margins, both of which are expected to jeopardize its status as a go-to for affordable fashion. Shein reported revenue of $48 billion in 2024, up from $30 billion in 2023, according to Priori Data.

Temu’s business faces similar pressure because most of its inventory comes from China, fueling its ultracheap offerings. Temu, operated by PDD Holdings, expanded its U.S. warehouse network via logistics firms WINIT and Easy Export. Its courier-based model may ease the 90 percent duty, or $75–$150 fee’s impact on parcels by bundling shipments, though 60–70 percent of China-sourced goods still incur the elevated tariffs before reaching American facilities.

A $5 item could jump to $14 or more after duties, challenging Temu’s ability to maintain its “shop like a billionaire” allure.