Trump’s trade blow aimed at Chinese e-commerce could land on his MAGA support base
Subscribe to enjoy similar stories. It doesn’t take an economic genius to pinpoint the allure of Chinese e-commerce giants. The rapid growth of platforms like Shein, PDD Holdings’ Temu and Alibaba Group’s AliExpress was never about the quality of their products, ethical supply chains, customer service, or even US consumerism and excess.
It’s always been about their ultra-low prices. As cost-of-living anxieties skyrocket and lingering inflation continues to bite household budgets, these digital outlets have been especially important for low-income Americans to obtain everything from phone chargers and dresses to blazers for a job interview. It may seem trivial, but these ultra-cheap marketplaces can make a difference, especially in rural areas underserved by discount retail chains.
US President Donald Trump’s revoking of the ‘de minimis’ rule, the tariff exemption that allows packages under $800 to enter duty-free, will no doubt hurt Chinese e-com players’ business models. But these companies have been preparing for it. The bigger pain will be felt by the US households that are already struggling to get by.
Research has shown that de-minimis shipments matter to many; 73% of direct imports shipped to the poorest zip codes of the US are in this category, and the share from China was more than double compared to the richest zip codes. Researchers found that eliminating the policy would “raise the cost of living disproportionately more for non-White households." The economists also calculated that it would result in the poorest zip codes facing average tariffs of 11.8%, compared with 6.5% for the richest. And this isn’t even taking in Trump’s fresh announcement of additional 10% tariffs on Chinese goods.
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