Trump Targets Loophole Temu, Shein Used to Take On Amazon

President Donald Trump’s new trade levies against China, Canada and Mexico include a broadside against international e-commerce, with apparent plans to extinguish a long-held tariff exemption for packages worth less than $800.

Trump’s executive orders directing 25% levies on Canada and Mexico — plus a 10% duty on China — specify that the “de minimis” exemption for small packages no longer applies. Under the exemption, products below that dollar amount are able to enter the U.S. without tariffs — a boon for China’s e-commerce retailers who ship often cheaper wares directly to consumers in the U.S.

Washington is taking aim at a loophole that retailers from PDD Holdings Inc.’s Temu to fashion-focused Shein have exploited for years to expand rapidly in the U.S. That’s given Chinese-linked e-commerce companies — which grew by hawking smaller packages in much higher volumes to consumers — huge advantages over market incumbents such as Amazon.com Inc. Critics say the flood of parcels from China is hard to monitor and may contain illegal or dangerous goods. 

Trump’s decision — while earlier than some analysts expected — had been largely anticipated by Temu and Shein. Since last year, t…