The Globe and Mail reports in its Tuesday edition that the agreement between the United States and China to temporarily slash tariffs stopped short of reinstating the U.S. "de minimis" duty exemption for e-commerce packages from China.
A Reuters dispatch to The Globe says that Chinese companies, which have taken market share from dollar stores and mall rivals, will likely use the 90-day reprieve to bring in bulk shipments and restock their U.S. warehouses, trade experts say.
President Donald Trump's administration on May 2 ended the de minimis policy allowing packages worth less than $800 (U.S.) ordered from China and Hong Kong to enter the U.S. duty-free. Shipping products duty-free from China to American consumers helped Chinese retailers Temu and Shein surge in popularity selling ultracheap gadgets, clothes and accessories. Their success drove Amazon to set up a copycat service, Amazon Haul, which also benefited from the de minimis policy.
The removal of de minimis exposed those packages to steep tariffs of up to 145 per cent on most Chinese goods, threatening business models centred around rock-bottom prices and leading Shein and Temu to cut advertising spending in the U.S. and turn to Europe instead.
© 2025 Canjex Publishing Ltd. All rights reserved.