Chinese exports found deals galore in U.S. due to tax loophole; now, such benefits no longer available
Host:JUANA SUMMERS, HERE:
Many folks in the U.S. are flocking to Chinese platforms like Temu and Shein for deals, but come tomorrow, they'll have to shell out some extra cash for these bargains. The reason? Countering the trafficking of fentanyl, claims the Trump administration. NPR's Emily Feng gives us the lowdown.
Feng's Take:Amanda Norris confesses she'd forgotten to order new pet harnesses and, to her shock, found herself staring at an import duty bill nearly doubling the original price when shopping on Temu. With such a steep increase, she's no longer keen on turning to these platforms. If you're wondering why you'll be paying more, here's a brief rundown.
Originally, small packages valued under $800 could enter the U.S. duty-free. However, this de minimis exemption has been enticing shoppers on Shein and Temu, but it's all changing. As of tomorrow, import duties will reach an eye-watering 120% on these low-cost items like apparel, electronics, and toys, not to mention additional fees of around $100–200 for postal items. As a result, consumers could face skyrocketing costs of up to 210% depending on product categories.
But what about the government? Well, they stand to gain better trade enforcement and additional revenue with these new tariff structures, which include a 10% universal baseline tariff and rates as high as 145% for Chinese goods. Clamping down on illicit activities such as forced labor supply chains and counterfeit goods is another advantage.
Chinese shopping apps like Temu are already promoting local goods, which are already in U.S. warehouses, to bypass these import duties. However, these items will eventually run out. Meanwhile, American manufacturers are worried about competing with these insanely low prices.
This policy shift effectively brings an end to the era of frictionless cross-border e-commerce from China. Consumers and platforms alike have no choice but to adapt to these new, expensive realities.
Emily Feng, NPR News, Washington. Transcript provided by NPR, Copyright NPR.
- The Trump administration claims the reason for the increase in costs for bargains from Chinese platforms like Temu is to counter the trafficking of fentanyl.
- NPR's reporting revealed that consumers, like Amanda Norris, are shocked to find themselves facing import duty bills nearly doubling the original price when shopping on Temu.
- As a result of the new tariff structures, the government stands to gain better trade enforcement and additional revenue, while consumers could face skyrocketing costs of up to 210% depending on product categories.
- Chinese shopping apps like Temu are promoting local goods to bypass these import duties, although these items will eventually run out.
- American manufacturers are worried about competing with the insanely low prices offered by Chinese platforms, as this policy shift brings an end to the era of frictionless cross-border e-commerce from China.
