$442 for $304 package? No taxes now on packages for Shein and Temu!

President Donald Trump has announced that Americans will not immediately face steep import fees on cheap goods from Chinese retailers like Shein and Temu.

A new executive order, signed Wednesday but only made public this afternoon, temporarily delays tariffs on low-cost packages from China until the Commerce Department establishes a system to process and collect tariff revenue.

Backlash prompts Trump’s policy shift

Trump’s reversal comes after widespread complaints from shoppers who saw significant price increases on their online orders. His new trade rules, which took effect Tuesday, led to abrupt price hikes as retailers added import duties at checkout.

The change also caused major disruptions in shipping, with the US Postal Service temporarily halting package acceptance from China and Hong Kong earlier this week. At New York’s JFK Airport alone, over a million parcels were reported stuck due to processing delays.

Shoppers stunned by unexpected import fees

The sudden end to the de minimis rule, which previously allowed packages under $800 to enter the US duty-free, caused confusion and frustration among consumers. Victoria Alario, a TikTok user, shared her experience of being hit with a $101 duty charge on a $304 order from Meshki, a boutique clothing store shipping from China.

“I was shocked. I didn’t expect this at all,” she said in her viral post.

Retailers such as Shein and Temu quickly adjusted by adding the import duties to customer orders. Without the de minimis exemption, shoppers could soon see higher prices on everything from $5 shirts to $20 shoes.

Wider impact on electronics and major imports

The tariff policy isn’t limited to clothing. The US imported $146 billion in electronic products from China in 2023, and price hikes could soon hit laptops, tablets, gaming consoles, smartphones, and televisions.

Retail analysts say American chains like Walmart and Amazon, which ship from domestic warehouses, have been at a disadvantage against Chinese competitors who previously bypassed import fees. Trump’s new tariffs aim to level the playing field but could lead to higher prices across multiple industries.

Tariffs as a tool to pressure trade partners

Trump has justified the tariffs as a way to punish China for failing to curb illegal migration and fentanyl trafficking into the US. Canada and Mexico narrowly avoided immediate tariff increases after agreeing to boost military presence at their borders.

However, if these agreements falter, Trump could reinstate tariffs, affecting everyday essentials like crude oil, gasoline, vehicles, lumber, alcohol, and produce—raising prices for millions of Americans.