Frequent Shein and Temu shoppers can find some relief as President Donald Trump recently implemented new trade policies with China. Following talks with Beijing, tariffs on Chinese imports were reduced significantly, with the most stringent policies rolled back to allow for smoother trade relations. Trump’s broad trade deal announcement on Monday marked a significant shift, lowering import taxes on all Chinese goods from a staggering 145% to a more manageable 30%. In response, China reciprocated by lowering its tariffs on U.S. imports from 125% to 10%. These tariff reductions are set to last for the next 90 days as negotiations continue for a more long-term agreement between the two economic powerhouses.

Moreover, an executive order signed by Trump also temporarily lowered the tariff on low-value, direct-to-consumer parcels from China and Hong Kong. This move aimed to ease the burden on consumers and businesses affected by the previous tariff hikes. The tariffs on low-value imports from China, particularly impacting e-commerce giants like Shein and Temu, had created challenges for businesses and led to price increases for consumers. While the recent changes provide temporary relief, the uncertainty surrounding future trade policies leaves both businesses and consumers in a state of flux. Shoppers can expect some adjustments in pricing and sourcing strategies from companies like Temu, which has already shifted towards selling goods from local merchants in the U.S. market. The evolving trade landscape underscores the intricate relationship between global trade policies and consumer behavior, with implications for the fashion industry and beyond.