WASHINGTON: The United States on Friday ended a tariff exemption for goods shipped from China worth less than $800, dealing a major blow to popular e-commerce sites such as Shein and Temu, whose cheap items consumers have come to rely on.

The decision was announced last month, with the White House calling it a “critical step in countering the ongoing health emergency posed by the illicit flow of synthetic opioids” from China to the United States.

Starting on Friday, goods shipped commercially will now be subject to new tariffs of 145 per cent — the current level of levies imposed on goods coming from China.

Items sent through the US Postal Service will be hit with duties of 120pc of their value, or a $100, which will increase to $200 next month. The elimination of the ‘de minimis’ exemption now subjects even low-value imports to tariffs,” EY chief economist Gregory Daco wrote in a recent note to clients, adding it would squeeze “already-thin margins and driving up end prices.”

The measures mark the latest salvo in a burgeoning trade war between the United States and China — the world’s two largest economies.

The White House has also slapped additional levies of 25pc on several sectors including automobiles, steel and aluminum from China.

Beijing retaliated with sweeping 125pc levies on US imports.

Most other US trading partners face a baseline tariff of 10pc, except for Mexico and Canada which face a higher 25pc tariff on goods not covered by a current North America free-trade deal.

Published in Dawn, May 3rd, 2025