Kiss your dirt cheap Temu and Shein orders goodbye, Trump’s tariffs hit hard
The extremely popular apps for dirt cheap items could get a cold shower from Trump (with love): his tariffs and changes could make it so that Temu and Shein prices rise as much as 30%, a new report reads.
According to a report by House Republicans, nearly half of all “de minimis” shipments to the US originate in China. Of those, a solid third are Temu and Shein packages. “De minimis” (from Latin: something insignificant, too small) was a rule passed by Congress many decades ago that allows goods worth $800 or less to be shipped or brought to the US without import taxes.
President Trump repealed this tax loophole on cheap imports right after he announced his hardcore tariffs on most US trading partners.
This is what Temu and Shein have been thriving off of – if a large US-based store orders 5,000 pairs of jeans from China, it will pay import taxes. These taxes will then translate to you, the end user.
Will you keep Temu and Shein on your phone? | Image credit – PhoneArena
Amazon could be the other big player that’s hit by Trump’s tariffs and taxes tornado. The e-commerce giant announced the Haul platform that also sells cheap goods from China (a Temu sibling, if you like).
Actually, Trump had scrapped the exemption in February, but the sudden change overwhelmed Customs and Border Protection and led the US Postal Service to temporarily halt shipments from China and Hong Kong. The exemption was quickly reinstated to give the Commerce Department time to develop a system to properly collect the tariffs.
Now, the White House says those systems are in place, and low-value imports will face a new duty: either 30% of the item’s value or a flat $25 fee — increasing to $50 per item after June 1.
Companies like Shein and Temu have potentially avoided billions in tariffs. Since 2015, the low-cost items imports have jumped from around $139 million to over $1.36 billion annually by 2024 – totaling roughly $66 billion, according to estimates from the Peterson Institute for International Economics.
