The 145% tariff on Chinese imports represents a dramatic escalation in the US-China trade war, implemented through a series of executive orders signed by President Trump in April 2025. The tariff structure consists of a base 20% rate that Trump imposed in February and March, plus an additional 125% reciprocal tariff announced on April 91. This steep rate applies to most Chinese goods, though certain products are exempt, including personal transfers without value, donations, steel and aluminum articles already subject to Section 232 tariffs, pharmaceuticals, semiconductors, and energy products1.

The situation has continued to escalate, with China retaliating by raising its own tariffs on US imports to 125%23. In response, the White House announced that China now faces up to 245% tariffs on imports to the United States as a result of these retaliatory actions3. This trade conflict has significantly impacted global markets, with China's Foreign Ministry spokesperson indicating the country is prepared to "fight to the end" while still advocating for dialogue based on mutual respect1. The tariffs are particularly devastating for e-commerce platforms like Temu and Shein, which previously benefited from the de minimis exemption that allowed packages under $800 to enter the US duty-free45.

The May 2 implementation of Trump's executive order will dramatically alter the economics of Chinese e-commerce in the US market. Under the new rules, parcels from mainland China and Hong Kong will face either a 120% ad valorem duty on their declared value or a flat fee of $100 per item (increasing to $200 after June 1, 2025).1 This represents a significant escalation from the initially announced 30% duty and $25 per-item fee.21

Both Temu and Shein have been preparing for this disruption, with Temu telling customers they've "stocked up and stand ready to make sure your orders arrive smoothly during this time."3 The tariff changes target the core business model of these platforms, which process millions of small-value shipments daily.1 Critics of the de minimis exemption, including American retailers like Forever 21, have blamed the loophole for enabling foreign competitors to "sell their products at drastically lower prices to U.S. consumers," contributing to domestic business failures.4

The decades-old de minimis exemption, which allowed products valued under $800 to enter the U.S. duty-free, will end for goods from China and Hong Kong on May 2, 2025, following President Trump's executive order signed on April 2.12 This change means Chinese imports previously qualifying for the exemption will now face significant tariffs—up to 145% for non-postal shipments and either 30% of value or $25 per item (increasing to $50 after June 1) for goods entering through the international postal network.34

The elimination impacts approximately 4 million daily shipments that previously entered the U.S. under this provision, with Chinese goods estimated to represent 60-75% of all de minimis imports.56 The change disproportionately affects direct-to-consumer e-commerce platforms and will increase costs for American consumers by approximately $10.9 billion annually ($136 per family), with low-income and minority consumers bearing the heaviest burden.7 The White House has indicated the exemption will eventually be eliminated for all countries subject to U.S. tariffs, not just China and Hong Kong, once "adequate systems are in place" to collect tariff revenue.28