Starting May 2, 2025, the U.S. will end tariff exemptions on low-value goods under $800 sent from China and Hong Kong, leading to a sharp decrease in package volumes from China to the U.S. This measure particularly impacts Chinese e-commerce platforms like Temu and Shein.

How Much Will Packages from China Decrease?

• Expected 35% Decrease: Gene Seroka, director of the Port of Los Angeles, stated that shipments from China to the U.S. West Coast are expected to decrease by about 35% next week. This is a result of major U.S. retailers halting orders. 

• Significant Decrease in Daily Packages: As of 2024, the U.S. imported an average of about 4 million low-value packages daily, many of which were sent from China. With the end of tariff exemptions, a significant number of these packages are expected to decrease.

Key Changes from the End of Tariff Exemptions

• Imposition of Tariffs: Previously, low-value goods under $800 were exempt from tariffs, but now these goods will be subject to tariffs of up to 145%.

• Increased Delivery Delays and Costs: The imposition of tariffs is expected to lengthen delivery times and increase consumer prices.

Responses from E-commerce Platforms

• Strategy Changes by Temu and Shein: Temu has stopped direct shipping from China to the U.S. and switched to shipping through warehouses in the U.S. Shein is also adopting a similar strategy.

• Price Increases: Due to the imposition of tariffs, Temu and Shein have raised product prices by up to 100%.

Due to changes in U.S. customs policy, the volume of packages from China to the U.S. is expected to decrease by at least 30-35% in the short term. This is having various impacts, including changes in e-commerce platform strategies, rising consumer prices, and delivery delays, which could lead to significant changes in trade relations between the U.S. and China.