US, Small parcel tariff rate from China·Hong Kong raised to 90%

As the United States government significantly strengthens regulations on low-cost products from China, Chinese e-commerce platforms such as Temu and Shein have been directly affected. The measure, which will be implemented from May, involves imposing a 90% high tariff on small parcels under $800 that have previously enjoyed duty-free benefits. This is three times the existing 30% rate.

This measure is part of the Trump administration's policy of pressuring China in trade. President Trump signed an executive order earlier this month that includes abolishing the ‘de minimis’ duty-free system, and the tariff increase is an extension of this measure. The United States stated that this decision also has a retaliatory aspect in response to China's counter tariffs (34%).

According to the details released by the White House, in addition to the tariff increase, the fee per mail item will also rise significantly. From May 2 to June 1, the fee will be $75 per item, and after that, it will be raised to $150. The originally planned amounts were $25 and $50, respectively.

The main targets of this measure are China-based e-commerce companies that have directly shipped ultra-low-cost products to the United States. Platforms like Temu and Shein have quickly secured an American consumer base with low prices and direct delivery models, but their price competitiveness is expected to weaken sharply with this tariff increase.

The tariff policy has intentions beyond simple trade adjustments. U.S. authorities have raised suspicions that small parcels have been exploited as smuggling routes for ingredients of synthetic drugs such as Fentanyl, and President Trump has continually pointed to China regarding this issue. Fentanyl, known as the ‘Zombie Drug’, is an emerging serious social issue within the United States.

Consequently, this measure is interpreted as an extension of the trade conflict between the U.S. and China, and a declaration of the U.S.'s leading control over e-commerce flows. American consumers, sellers, and platforms that relied on low-cost direct purchase products from China are facing a new phase.