- President Trump postpones ending the de minimis exemption on small imports from China. Allows small packages under $800 to continue entering the U.S.
- In anticipation of tariff changes, Temu shifted to U.S.-based warehouses to reduce reliance on Chinese sellers.
- Trump plans to announce reciprocal tariffs on multiple countries.
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President Donald Trump delayed plans to end a tax exemption on small imports from China. Originally, Trump’s plan to tax goods coming from China would have closed a loophole on packages worth less than $800, which could have led to higher prices for consumers.
USPS temporarily halted shipments from China, Hong Kong
The U.S. Postal Service responded by halting shipments from popular Chinese companies, including Temu and Shein, which have benefited from the de minimis trade exemption. USPS lifted the suspension on Wednesday, Feb. 5. This exemption allows these digital shopping giants to offer products at lower prices by avoiding tariffs.
Trump’s tariff on China
Trump’s 10% tariff on China took effect on Feb. 4, potentially eliminating the exemption. However, on Friday, Feb. 7, Trump signed an executive order postponing the tax exemption, allowing small packages from China to continue entering the U.S.
The order said the White House plans to develop systems to process and collect tariff revenue on these packages, while the exemption remains in place for the time being.
Temu proactively prepared for the potential end of the de minimis exemption by shifting to U.S.-based warehouses for product shipments. This strategy helps promote local inventory, and decreases reliance on Chinese sellers.
Reciprocal tariffs are coming
In addition to the changes on Chinese imports, Trump announced plans for reciprocal tariffs. He said he will make an announcement next week to impose tax levies on several countries, fulfilling a campaign promise. White House officials have stated that the plan aims to boost the government’s budget through increased tariffs.
Trump previously announced a 25% tariff on imports from Canada and Mexico but delayed its implementation while both countries continue negotiations.
