Trump officially maintains 120% cheap goods tax on China, hitting Shein and Temu

Small packages from China will continue to face a 120% tariff, a White House official confirmed Monday, posing a significant setback for American consumers who rely on low-cost goods from e-commerce giants like Shein and Temu.

The Trump administration had previously closed a long-standing loophole that allowed inexpensive imports to enter the U.S. duty-free. While most other Chinese goods saw steep tariffs temporarily eased under a new trade deal announced Monday, these particular levies remain firmly in place.

The new agreement drops tariffs on a wide range of Chinese imports from 145% to 30% for a 90-day period. However, it excludes the tariff on small packages valued under $800, which still face the 120% rate—or a flat $100 fee per shipment, according to a White House official. That flat fee is set to double to $200 starting June 1.

The so-called “de minimis” exemption previously shielded packages under $800 from added tariffs, enabling companies like Temu and Shein to sell inexpensive products directly to American buyers. But that exemption was officially repealed earlier this year, following a delay while U.S. Customs and Border Protection set up a system to begin collecting the fees.

Critics argue that the loophole undercut domestic retailers. Fashion chain Forever 21, for example, cited competition from Shein and Temu as a factor in its decision to shutter U.S. locations and begin liquidation.