China
US Trump Tariffs: Major Effects on China’s Ultra-Fast Fashion Industry
In April 2025, Trump reinstated tariffs on Chinese imports, revoking the de minimis exemption for shipments under $800. This change threatens China’s ultra-fast fashion sector by increasing operational costs and disrupting their high-frequency shipping model. E-commerce platforms face significant challenges.
US Trump tariffs, reinstated in April 2025, revoked the de minimis exemption for Chinese shipments, introducing new tariffs on small packages and bulk imports. This shift threatens China’s ultra-fast fashion sector, by raising operational costs and disrupting their business model based on low-value, high-frequency shipments.
In early 2025, the US took significant steps to close a loophole that had long benefited Chinese e-commerce giants like Shein and Temu. The de minimis exemption, which allowed small-value shipments from China—valued at US$800 or less—to enter the US tariff-free, was initially revoked on February 1, 2025, as part of the broader America First Trade Policy.
This shift marked a major change in how low-value goods from China are treated. However, the full implementation of this policy was paused shortly after, as the U.S. government acknowledged the need for better systems to process tariffs and ensure compliance. The exemption was temporarily retained until the required infrastructure could be established.
On April 2, 2025, President Trump signed an executive order imposing a 34 percent across-the-board tariff on Chinese exports to the US and a 30 percent flat-rate tariff on small postal packages. These measures are expected to significantly impact China’s ultra-fast fashion sector, which has relied heavily on low-cost, high-frequency shipments to maintain competitive pricing.
In this article, we explore the effects of Trump’s tariffs on China’s ultra-fast fashion market, how these changes are reshaping trade dynamics, and the challenges e-commerce platforms like Shein and Temu now face in this evolving landscape.
For years, ultra-fast fashion platforms—including Shein, Temu, and an increasing number of Chinese-based sellers on Amazon and TikTok Shop—leveraged the US de minimis exemption to flood the American market with low-cost, trend-driven products. This rule, codified under Section 321 of the US Tariff Act, allowed individual packages valued at US$800 or less to enter the country free of duties and inspections.
This regulatory loophole dramatically reduced shipping and customs costs, giving ultra-fast fashion players a competitive edge. Instead of consolidating orders and paying bulk import duties, companies could ship thousands of individual parcels directly to consumers—many of which bypassed scrutiny entirely. According to analysts, nearly four million packages per day entered the US under this exemption in 2024, a significant share of them originating from Chinese e-commerce platforms.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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