Donald Trump is making it even more expensive for US consumers to shop online from Chinese retailers like Temu and Shein. In an executive order amendment published Tuesday night, Trump raised the tariff rate for packages valued under $800 entering the US from China and Hong Kong that previously were exempt. The increase essentially triples what shoppers would have paid previously.
Under a previous tariff package hitting Chinese imports, sub-$800 packages were subject to a 30 percent tariff on the total value of the package, or $25 per postal item. Now, those rates have jumped to 90 percent of the value or $75 per postal item. The White House didn’t immediately clarify which of the two rates packages would be subject to — the executive order suggests carriers can opt for “either” method.
China is an epicenter of manufacturing for the world, and the US is the world’s largest importer. Sudden and sweeping tariffs will affect everything from shoes and clothes to electronics, furniture, and components like screws used to build other products. Tariffs were one of Trump’s favorite campaign promises, though the scale of what he’s implemented has reportedly shocked trade partners. Economists widely agree that tariffs alone cannot bring back manufacturing jobs to the US, though Trump and others in his administration regularly claim otherwise.
The amendments make an already significant change to trade policy even more disruptive. It’s not entirely clear how companies (or services like USPS or DHL) will collect the tariffs on low value packages — but experts warn that there will be delays and backlogs. The new taxes take effect May 2nd, which gives shoppers and carriers a little bit of time to make a plan before the ultra cheap China-centered shopping becomes much pricier.
