In a stunning escalation of U.S.-China trade tensions, American consumers who rely on ultra-affordable shopping platform Temu are now bracing for a financial hit.
President Donald Trump has launched a new round of crushing tariffs, including an executive order that triples duties on low-value goods — a move that directly impacts shoppers using e-commerce sites like Temu.
Effective Wednesday 9, April 2025, imports valued under $800 from China, which were previously exempt under the “de minimis” rule, will now face a punishing 90% tariff.
This dramatic leap from the planned 30% rate is expected to send Temu prices skyrocketing and cause widespread shipping delays, sending shockwaves through the American bargain-hunting community.
The tariff surge is part of Trump’s broader retaliation strategy. After China reaffirmed its intent to impose 34% tariffs on U.S. goods, the president responded by raising tariffs on Chinese imports to an eye-watering 104% in total. The White House claims this is necessary to combat unfair trade practices.
“These tariffs are a bold stand for American workers,” White House Press Secretary Karoline Leavitt told reporters. “President Trump will not flinch. The days of allowing foreign platforms like Temu to undercut our economy are over.”
Temu, which has surged in popularity by offering low-cost goods directly from China to U.S. consumers, now finds itself squarely in the center of a geopolitical and economic firestorm.
Items ranging from fashion accessories and tech gadgets to home essentials — all staples of Temu’s massive marketplace — are likely to see price jumps as high as 90% overnight.
Market reaction was swift. The Dow dropped 320 points Tuesday, while the S&P 500 and Nasdaq plunged 1.57% and 2.15%, respectively. Asian stock markets followed suit, with sharp declines in Tokyo, Hong Kong, and Seoul.
China’s Commerce Ministry condemned the move, calling it “a mistake upon a mistake” and promising swift retaliation.
Beijing is reportedly considering restrictions on U.S. agricultural products and American cultural imports like Hollywood films.
Meanwhile, Trump’s executive order has rattled Temu’s millions of American users, many of whom depend on the platform for affordable everyday goods.
Analysts say the decision could have a chilling effect on cross-border e-commerce and potentially reignite inflationary pressures across the U.S. economy.
While Trump has left the door open to individualized trade negotiations with other nations, there was no mention of any relief for digital retail platforms or consumers impacted by the de minimis crackdown.
For Temu shoppers across the country, the message is clear: the golden age of dirt-cheap imports may be over.
Vital Points Worth Noting:
- Since it’s past Wednesday 9th April 2025, anything above $800 will be subjected to 104% tariffs. For instance, an item going for $1000 in China will incur $1040 in tariffs. Upon reaching the US, it means the lowest amount you might get it for is $2040
- Too much panic buying is happening. Unless you are buying a vital product that you can’t find in the US, it’s advisable to avoid the purchase. The backlogs to be witnessed will most likely get you hit with tariffs
- De minimis is active until May 2, 2025. Those ordering products from China with order values below $800 are safe until then. However, order well in advance to ensure that the items will reach the US before May 2nd.