U.S. President Donald Trump’s decision to eliminate a special exemption that allows products from mainland China and Hong Kong under $800 to enter the U.S. tariff-free, part of his trade offensive against Beijing, is hitting the ever-growing market of online shoppers. Starting Friday [May 2, 2025], Americans will see the cost of the president’s 145 percent tariff on Chinese goods on many packages they order directly from retailers there — some with tariff fees clearly displayed on their invoices.
Fast-fashion giants Shein and Temu, which ship many Chinese-made products directly to consumers, have already raised prices, and publicly blamed U.S. tariffs. Temu is displaying the “import charges” that more than double the costs of items coming from China, while highlighting “local” items not subject to tariffs. The global shipping company UPS recently rolled out a service where people will be able to see the full cost of their purchase — including tariffs — before checking out. That means anyone who uses UPS will be able to figure out exactly how much the Trump administration’s tariffs cost on each purchase.
The cost will fall on the person who is buying the product — the de facto importer — unless the business that’s mailing the package chooses to pay the tariff up front. That decision will look different for each business. If the seller doesn’t pick up the cost of the tariff, the person purchasing it would either have to pay online, pay when a carrier delivers their package or pay at the post office, FedEx or UPS center.
The preceding material was excerpted from the following article: Trump’s tariffs have shaken Wall Street. Now they’re hitting packages. - POLITICO