How lower China tariffs will affect direct-to-consumer imports

HongKong, China - November 2019: Stacked shipping container on freight harbour logistics centre in Hong Kong

reduction in U.S. tariffs on China-made goods has generated optimism among direct-to-consumer shippers, but there’s still plenty of work ahead for their supply chains to adjust to evolving trade rules.

Direct shipping models have faced tariff and compliance-related turbulence since the U.S. eliminated de minimis eligibility for China and Hong Kong products on May 2. The exemption, which allows sub-$800 imports into the U.S. to avoid added duties, has long helped Shein, Temu and other e-commerce companies keep prices low when shipping China-made orders to consumers.

The trade tool’s usage plummeted when the change took effect, as it exposed low-cost imports from China — where the bulk of de minimis activity comes from historically — to 145% tariffs. Daily de minimis volume has seen a decline “upwards of 85%,” Chris Mabelitini, director of U.S. Customs and Border Protection’s intellectual property rights and e-commerce division, said during a May 7 panel at the agency’s 2025 Trade and Cargo Security Summit.