US Targets Chinese E-Commerce with New Tariff Rules

The Biden administration is cracking down on the “de minimis” exemption, which Chinese e-commerce giants like Shein and Temu have exploited to flood the U.S. market with tariff-free products. Under the current rules, shipments under $800 avoid tariffs, but new regulations proposed Friday aim to put an end to this loophole.

With Chinese e-commerce surging, shipments claiming this duty-free status have skyrocketed from 140 million to over one billion annually. Most of these products come directly from China, shipped straight to consumers rather than in bulk to warehouses. The new rules would bring these low-cost goods under closer inspection and subject them to tariffs, a move targeting the business models of ultra-affordable retailers.

As this proposal takes shape, it signals the administration’s intent to level the playing field for domestic producers while addressing trade imbalances with China.