The world’s biggest names in online retailing (Temu, Shein, Amazon) face major upheaval with the White House’s introduction of tariffs on imports from China and an EU crackdown on the shipment of unsafe products.
The demise of ‘de minimis’: President Donald Trump’s imposition of a 10% tariff on all Chinese imports, effective February 4, 2025, has brought with it the end of the “de minimis” exemption, which previously allowed duty-free entry for packages valued under $800. Chinese e-commerce platforms have previously taken advantage of the exemption to offer low-cost goods to U.S. consumers.
The death of de minimis will likely see the likes of Temu, Shein, and AliExpress raise their prices. This may benefit U.S.-based retailers including Walmart, Target, and Amazon, which could grab a larger share of bargain-hunting shoppers’ wallets as cheap Chinese imports become a less attractive option.
Deliveries delayed: In other tariff-related news, the U.S. Postal Service briefly suspended, then resumed, accepting parcels from China and Hong Kong. The reason for the temporary parcel pause wasn’t explained, but it was clearly related to the de minimis decision. The U.S. Customs and Border Protection agency processed more than 1.3 billion de minimis shipments last year, “likely nearly half” of them originating from China.
European e-commerce crackdown: Meanwhile, the European Commission is intensifying scrutiny of Chinese e-commerce platforms, particularly Temu and Shein, due to concerns over unsafe and counterfeit products flooding the EU market. The Commission’s plans include eliminating the duty-free exemption to ensure these retailers adhere to EU regulations. A coordinated investigation into Shein’s potential violations of consumer protection laws has been initiated.
