TikTok Shop, a major e-commerce platform connecting Chinese vendors with overseas consumers, has flagged US tariff risks to its merchants, as well as promoting European sites, after US President Donald Trump tripled tariffs on small parcels exported from mainland China and Hong Kong, which were previously exempt from duties.
The exemption had greatly benefited Chinese online sellers by waiving duties on items valued at under US$800, underpinning the boom in cross-border e-commerce via platforms such as TikTok Shop, Shein, Temu as well as Amazon.com. But according to an amendment on so-called reciprocal tariffs imposed by the White House, the new rate on packages priced up to US$800 will be 90 per cent of their value, up from the original levy of 30 per cent. The fee per postal item will be raised to US$75 from the original US$25 after May 2, and to US$150 after June 1.
Merchants with shops on other platforms such as Amazon, eBay and Wayfair, or TikTok Shop merchants selling in the US, will be welcome to open shops on sites in Spain, Germany, Italy and France, according to the statement.
Data from US Customs and Border Protection shows that about 1.36 billion packages entered the US under the de minimis provision in 2024, more than double the 637 million seen four years prior. Approximately 60 per cent of these duty-free parcels originated in China.
Chinese e-commerce exporters have had to scramble to respond to Trump’s tariffs.