Chinese online retailers face 90 per cent tax on goods sent to US

April 09, 2025 | 15:24

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The US announced it will triple tariffs on small parcels exported from China and Hong Kong to 90 per cent on April 8, with the measure taking effect from May 2. The postage costs per item on goods entering the US will double from $75 to $150 per item from June.

Temu, Shein have to pay tax at 90 per cent to enter US

The increases come after Beijing hit back at the sweeping tariffs announced by the US last week, saying it would impose a 34 per cent levy on imported American goods, in addition to existing duties, in retaliation to similar moves by Washington.

US President Donald Trump signed an executive order on April 2 to shut down a trade loophole known as 'de minimis' that has allowed low-value packages from China and Hong Kong to enter the US free of duties.

The move appears to be a massive blow to fast-fashion companies such as China-based Shein and Temu, which saw rapid expansion in the US through the almost century-old rule.

More than 90 per cent of all packages coming into the US enter via de minimis, and of those, about 60 per cent come from China, the White House said last week. The number of shipments entering the US through the duty-free route has exploded in recent years, reaching nearly 1.4 billion packages last year.

In 2023, the world's largest economy imported $66 billion worth of small-value Chinese goods, a sharp increase from $5.3 billion in 2018.

Tensions between the US and China have escalated since Trump took office in January. Each time the US has announced a new tariff, China has responded with measures such as imposing import taxes, tightening exports of critical metals, and placing US businesses on a list of unreliable entities or restricting their exports.

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