Tariffs Hit Temu, AliExpress: US Shoppers Face Higher Prices
U.S.consumers are beginning to see price increases on popular online shopping platforms like Temu adn AliExpress. A change in import regulations that took effect Friday is eliminating a long-standing duty-free exemption, impacting goods shipped from China.
The “de minimis” exemption,which previously allowed packages valued under $800 to enter the U.S. without tariffs, has been revoked for shipments originating from mainland China and Hong Kong. This change, implemented May 2, 2025, is part of ongoing trade tensions between the U.S. and China.
End of an Era for Discount Shopping
The now-defunct exemption had been a boon for Chinese e-commerce giants such as Temu, Shein, and AliExpress, enabling them to offer deeply discounted clothing, household goods, and electronics to American consumers.the new regulations impose meaningful customs duties on these previously exempt items.
Private carriers like UPS and FedEx are now assessing a 145% customs duty on parcels, mirroring the tariffs already in place for other chinese goods as early April.Shipments handled by postal services face either a 120% duty based on the itemS value or a flat fee. That flat fee started at $100 but is scheduled to increase to $200 on June 1, according to reports.
Aliexpress Adds Import Fees
Aliexpress, part of the Alibaba Group, has already begun adding “import charges” at checkout for products shipped directly from China. As an example, one customer reported that the cost of headphones initially priced at $8.74 jumped by $12.67 to $21.41 before local taxes and delivery fees were applied. This increase reflects the new 145% customs duty.
The website states that “Products from the People’s Republic of China (which includes Hong Kong products) intended to be consumed in the United States will be subject to all import charges (…) in accordance with the regulatory requirements currently in force in the United States.”
Temu Shifts to “Local” Supply
Temu appears to be adapting by highlighting products marked with a “local” label on its U.S. site. This designation indicates that the items are already stored in U.S. warehouses, thus avoiding the new customs duties. “This means that you will not have to pay customs fees,” the site assures shoppers.
The company stated it is “changing the operating model” and that “all its sales” in the united States are now provided “by sellers based” within the country.However, the long-term viability of this strategy remains uncertain, particularly as existing stocks of imported goods are depleted.
Trade Tensions and Market Reactions
U.S. Treasury official Scott Bessent has stated that the high level of tariffs is creating an “embargo” on trade. While Washington has expressed interest in de-escalation, it has been reluctant to make the first move. Beijing has acknowledged it is indeed “assessing” a negotiation proposal from the U.S.
Investors are seemingly optimistic about a potential easing of tensions.Shares of chinese e-commerce companies listed on the New York Stock Exchange saw gains. PDD, owner of Temu, rose by 4.34%,Alibaba by 3.77%, and JD.com by 4.12%.
Broader Implications
The White House estimates that more than 4 million packages previously benefiting from the duty-free exemption entered the United States daily. While President Trump initially announced the reinstatement of customs duties in early February, he delayed the decision to allow government agencies time to prepare.
Faced with similar influxes of packages, France has proposed implementing “management costs” on goods arriving from outside the European Union, starting in 2026. the EU is considering removing the customs duty exemption for parcels valued under 150 euros by 2028.
