The tariff rate on small parcels from China, which have long enjoyed duty-free benefits in the U.S., will see a sharp increase starting in May, dealing a major blow to Chinese e-commerce companies that have targeted the U.S. market with low-cost goods.
Additionally, American consumers who have heavily purchased affordable Chinese products through platforms like Amazon will now face significantly higher prices.
Amid escalating U.S.-China trade tensions, the Trump administration has decided to eliminate duty-free benefits for small parcels from China and impose a 90% tariff, according to reports from Bloomberg and Hong Kong’s South China Morning Post (SCMP) on the 9th.
According to the reciprocal tariff revision announced by the White House on this day, the U.S. will raise the tariff rate on small parcels under $800 from mainland China and Hong Kong from the current 30% to 90%—a threefold increase.
This measure comes as China announced plans to impose a retaliatory 34% tariff in response to the U.S.’s 34% reciprocal tariff on Chinese goods.
Earlier, on the 2nd, President Donald Trump signed an executive order abolishing the “de minimis” duty-free program, meaning tariffs on small parcels from China were set to begin next month on the 2nd.
U.S. authorities also revealed that the per-package postal fee for items arriving between May 2 and June 1, initially set at $25, will rise to $75. After June 1, the fee, originally planned at $50 per package, will increase to $150.
This policy is expected to directly impact Chinese e-commerce companies like Temu and Shein, which have exported ultra-low-cost goods manufactured in Chinese factories to the U.S.
Additionally, federal customs inspections of small parcels—suspected of being used to smuggle raw materials for drugs like fentanyl, dubbed the “zombie drug”—are likely to intensify.
President Trump has emphasized China’s responsibility, claiming that raw materials for fentanyl are produced in China and supplied to the U.S. via Mexican drug cartels.
With these high tariff policies, product prices are rising across the board. From lipsticks to sneakers, clothing, and gaming consoles, prices have increased by 5-10%, putting a strain on the wallets of online shoppers.
On the 9th, the South China Morning Post (SCMP) reported that global e-commerce giants like Amazon are raising prices on key imported consumer goods in response to the Trump administration’s high-tariff policies.
For example, on Amazon, bathroom exhaust fans, LED lighting, and other interior items, as well as shoes, saw price hikes of $5 to $15 overnight. A tube of “Givenchy,” a French luxury cosmetics brand lipstick previously sold for $340, has risen to $360.
Amazon is also reportedly planning to reduce purchases and reliance on Chinese products for the time being, anticipating a sharp drop in consumer demand due to high tariffs and fees.
Industry experts recommend that consumers check the applicable fees and tariffs when purchasing items from Amazon and similar platforms.