Trump’s China Tariff Could Hurt Brands Like SHEIN, Temu & More

Source: RODRIGO ARANGUA / Getty

On Feb. 5, the United States Postal Service (USPS) announced an order to halt incoming mail and parcels from China and Hong Kong but quickly reversed the decision. The announcement came just hours after President Donald Trump’s tariffs on imports from China took effect at midnight on Tuesday, impacting popular China-based brands like SHEIN and Temu.

In a statement released on its website, the USPS explained that it would be collaborating closely with Customs and Border Protection to develop an efficient strategy aimed at minimizing disruptions to package deliveries from China amid the new tariffs.

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So, if you buy some of your beauty products from SHEIN and Temu, you can still receive them but expect to pay a little more for your favorite goods.

Per The Mirror, following Trump’s executive order imposing a 10% tariff on Chinese imports, major retail players like SHEIN and Temu, who account for over 30% of U.S. shipments under the “de minimis” policy, may need to raise their prices.

The “de minimis” trade exemption, which allowed low-value shipments under $800 to enter the U.S. without incurring customs duties or tariffs, has now been closed. This change comes as part of a broader strategy that could impact more than $450 billion worth of imports, NPR reported. 

While Trump’s previous tariffs were more targeted, this round will likely affect a broader swath of American consumers. The new tariffs are expected to hit a variety of popular consumer goods, including footwear, video game consoles, and electronics such as iPhones and iPads. The Tax Foundation projects that the tariffs will increase the tax burden on the average U.S. household by $172, the outlet noted.

Toys will also be impacted by the China tariff

If you’re a parent, you may soon find yourself paying more for your child’s toys. Mattel, for instance, is preparing to increase prices due to the newly imposed tariffs on Chinese imports, as the company manufactures around 40% of its products in China, according to CNBC.

While less than 10% of its products are made in Mexico, another country affected by potential tariffs, Mattel may be facing additional challenges if Trump follows through with his original plan. Although Trump has agreed to pause tariffs on Mexico and Canada for 30 days, he could still impose them after that period. In response, Mattel is adjusting its supply chain to minimize the impact of the tariffs but is also contemplating price hikes.

“We do work closely with our retail partners to achieve the right balance and always keep consumers in mind when we consider pricing actions,” said Mattel’s finance chief Anthony DiSilvestro on a recent earnings call, CNBC noted.

Are you worried about the tariffs? Tell us in the comments section.

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