Trump Tariffs and the End of the ‘De Minimis’ Exemption: A Challenge for China’s E-Commerce Merchants

Impact of Trump Tariffs on China’s E-Commerce

Chinese cross-border e-commerce merchants – on platforms including Amazon.com, Shein, Temu, and ByteDance-owned TikTok Shop – are rushing to cancel discounts and explore new markets in response to increased American tariffs and the end of the de minimis exemption from duties.

With US President Donald Trump imposing a 34% reciprocal tariff on Chinese imports and discontinuing the de minimis exemption that allowed packages worth less than $800 to enter the US duty-free, many of the country's 120,000 online exporters are adjusting.

Details on the New Tariff Structure

• 34% increase: Includes a country-specific 24% duty plus a 10% universal baseline.
• Effective Dates: New baseline rate kicks in April 5; the higher rate begins April 9; exemption ends May 2.

These changes pose a huge challenge to small exporters, manufacturers, and Chinese online merchants. Merchant Ding Minjian from Anhui is expanding operations into Europe and the Middle East to mitigate US reliance. He notes, “Our customised press-on nails provide higher profit margins, allowing us to remain profitable amid higher tariffs.”

Export Growth Amid Challenges

Despite these hurdles, China’s cross-border trade turnover has surged, reaching 2.63 trillion yuan ($361 billion) in 2024, driven by platforms like Amazon and PDD Holdings' Temu.

A TikTok merchant recently cancelled discounts to American clients due to added costs, while another merchant selling on Temu prepares to tap into European and Southeast Asian markets. The China National Textile and Apparel Council and the China National Light Industry Council have publicly opposed the end of US tariff exemptions, voicing the concerns of local manufacturers.