The Trump administration dramatically escalated the US-China trade war in April 2025, implementing a staggering 145% tariff on Chinese imports. This tariff consists of a 125% duty on top of the existing 20% baseline rate that was previously imposed on goods from China.12 The tariff hike came after a series of escalating trade measures, with Trump initially raising baseline tariffs to 10% in February, then to 20% in March, before the dramatic April increase.2

In response, China immediately retaliated with matching 125% tariffs on US imports, effective April 12, 2025.1 The Chinese Foreign Ministry stated they were prepared to "fight to the end" if tensions escalated further, while simultaneously advocating for dialogue.1 This trade war has particularly impacted e-commerce platforms like Temu and Shein, which rely heavily on Chinese manufacturing, forcing them to announce price increases starting April 25.34 The elimination of the de minimis exemption, which previously allowed packages valued under $800 to enter duty-free, further compounds the situation, with packages from China facing either a 120% tariff or a $100 postal fee per item starting May 2.45

The de minimis exemption, which allowed goods valued under $800 to enter the U.S. duty-free, will be officially eliminated for imports from China and Hong Kong starting May 2, 2025, at 12:01 a.m. EDT.12 This policy change follows a brief implementation attempt in February that caused significant logistical disruptions, including a temporary halt in parcel acceptance by the USPS, before being reversed to prepare for full enforcement.1

Under the new rules, Chinese and Hong Kong shipments previously qualifying for de minimis will face severe financial penalties:

• Non-postal shipments will be subject to all applicable duties, including the 145% tariff23

• Postal items will incur a duty of 120% of the item's value plus a $100 per package postal fee (increasing to $200 on June 1)21

• The White House has indicated plans to eventually eliminate the exemption for all countries once "adequate systems are in place" to process and collect duties, with exceptions only for travel purchases and gifts45

Both Temu and Shein have issued nearly identical notices to their US customers, warning that price adjustments will take effect on April 25, 2025, due to "recent changes in global trade rules and tariffs" increasing their operating expenses12. The retailers are encouraging consumers to take advantage of current prices before the hikes, stating: "Until April 25, prices will stay the same, so you can shop now at today's rates"34.

To minimize disruption during this transition period, both companies claim they've "stocked up and stand ready to make sure your orders arrive smoothly"13. While neither retailer has specified exactly how much prices will increase, the adjustments come just one week before the May 2 implementation date when the de minimis exemption ends and Chinese imports face the full 145% tariff56. This price adjustment represents a significant turning point for both platforms, which built their business models around offering ultra-low-cost products directly from Chinese manufacturers to American consumers78.