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US Targets Chinese Retailers With 90% Tariff on Small Parcels Amid Escalating Trade War

by Team Lumida
April 9, 2025
in Macro
Reading Time: 4 mins read
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Tech Titans Pivot: Silicon Valley’s New Alliance in Trump’s Second Term

"Donald Trump" by Gage Skidmore is licensed under CC BY-SA 2.0

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Key Takeaways:

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  • The U.S. will impose a 90% tariff on imports of small parcels valued up to $800, up from the previously planned 30%, closing a loophole that allowed Chinese platforms like Temu and Shein to avoid duties.
  • Additional postal fees will rise to $75 per item between May 2 and June 1, and to $150 per item after June 1, significantly increasing costs for Chinese imports.
  • The measures are part of President Trump’s broader strategy to impose 104% tariffs on Chinese goods, intensifying the U.S.-China trade war.
  • The tariff hike follows Beijing’s retaliation to earlier U.S. tariffs, further straining global trade relations.

What Happened?

President Trump has escalated the U.S.-China trade war by imposing a 90% tariff on small parcels valued up to $800, targeting Chinese e-commerce platforms like Temu and Shein that had previously benefited from a de minimis rule exempting low-value imports from taxes.

In addition to the tariff hike, the U.S. will increase postal fees for imported goods, with rates rising to $75 per item in May and $150 per item in June. These measures aim to curb Chinese imports and protect U.S. businesses but are expected to raise costs for American consumers.

The move comes as Trump pushes ahead with 104% tariffs on many Chinese goods, even as his administration signals a willingness to negotiate.


Why It Matters?

The new tariffs and fees mark a significant escalation in the U.S.-China trade war, targeting Chinese e-commerce platforms that have gained a foothold in the U.S. market through duty-free imports. By closing the de minimis loophole, the U.S. aims to level the playing field for domestic businesses, but the measures could disrupt global supply chains and increase consumer prices.

The escalating trade tensions highlight the broader geopolitical rivalry between the U.S. and China, with both sides unwilling to back down. The measures also reflect Trump’s hardline approach to trade, even as his administration leaves the door open for potential dealmaking.


What’s Next?

The new tariffs and fees will take effect in May and June, with businesses and consumers expected to feel the impact of higher costs. The measures could prompt further retaliation from Beijing, escalating the trade war and increasing uncertainty in global markets.

Observers will closely monitor U.S.-China trade negotiations and the broader economic impact of the escalating tariffs, particularly on e-commerce and retail sectors.

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Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018