WASHINGTON, D.C., May 4, 2025 — Shoppers hooked on ultra‑cheap finds from Chinese e‑commerce giants awoke to a very different reality this weekend. The United States has scrapped the de minimis loophole that allowed goods worth under $800 to enter duty‑free from China and Hong Kong. Every parcel now attracts punishing new duties — 145 percent on commercial cargo and 120 percent (rising to $200 flat next month) on U.S. Postal Service deliveries. The White House says the move is aimed at choking off fentanyl precursors that routinely slip through small‑package channels.The White HouseReuters
Fast‑fashion marketplaces Temu and Shein, whose business model relies on shipping millions of low‑value packages directly from Chinese factories, face an immediate squeeze. EY chief economist Gregory Daco warns profit margins “will be crushed,” forcing price hikes that could dampen the impulse‑buy frenzy powering these platforms.news Temu has already told U.S. users it will pivot to domestic third‑party sellers and warehouse inventory stateside to blunt the tariff shock, while sources say Shein is delaying its long‑planned London IPO until the dust settles.newsWIRED
The tariff escalation is the latest volley in a renewed U.S.–China trade confrontation. Beijing retaliated within hours, slapping duties of up to 125 percent on selected U.S. imports, deepening an already fraught economic standoff between the world’s two largest economies.news
Notably, the policy singles out China; most other U.S. trading partners still face a 10 percent baseline duty, while Mexico and Canada incur 25 percent on goods outside the USMCA framework.Reuters That targeted approach may invite challenges at the World Trade Organization, though Washington argues the fentanyl crisis provides a national‑security justification.
U.S. Customs and Border Protection has begun enforcing the order at ports and postal facilities, but logistics experts question how origin will be verified on parcels routed through third‑country hubs before reaching American doorsteps.Reuters CBP has temporarily waived formal entry documentation on shipments up to $250 to keep ports moving — a stop‑gap that critics say could undercut enforcement precision.
For now, consumers will feel the change first. A $30 T‑shirt or $12 gadget once delivered for pennies may soon carry a price tag double its original cost. If bargain‑hungry Americans balk, Temu, Shein, and scores of smaller cross‑border sellers must either absorb the hit, reroute supply chains, or watch shoppers click elsewhere. The era of duty‑free ultra‑fast fashion from China, it seems, has closed overnight.
