The trade war just got personal—for your shopping cart and the airfreight industry.
President Trump’s latest move is ending duty-free access for small parcels from China and Hong Kong, starting May 2. This action targets the booming e-commerce pipeline behind platforms like Temu, Shein, and Alibaba. It also disrupts international freight networks.
What's Changing: De Minimis No More
For years, U.S. consumers enjoyed tax-free shopping thanks to the “de minimi” rule. Packages under $800 passed through customs without duties or fees. Now, Trump’s executive order applies tariffs to these shipments. A cheap dress from China may now include an extra 77.5% duties, along with customs processing and brokerage fees.
The pressure may increase. If China refuses to remove its retaliatory 34% tariff, Trump plans to add another 50%, raising the total tariff on Chinese goods to 84% by April 9.
Why It Matters: Who Pays for Higher Tariffs?
Let’s be honest—higher tariffs hit consumers the hardest. John Pickel of the National Foreign Trade Council put it plainly: “Those increased costs show up right on your invoice.” A $5 trinket from a marketplace like Temu could now cost nearly $10. It is more than inflation; it creates market disruption.
Retailers are scrambling to adapt.
Temu may raise prices and lose ground to discount stores. Shein has more pricing flexibility, but even they’ll feel the squeeze. E-commerce platforms will likely pass these new costs on to customers.
The Freight Factor: Air Cargo in Turbulence
The impact extends far beyond consumers. The air cargo industry is bracing for turbulence. According to Xeneta, most cross-border e-commerce shipped by air accounts for roughly half the cargo volume from China to the U.S. With duty-free shipping gone, airlines are canceling charter flights and leaving freight space unsold.
Expect a short-term shipping surge before May 2 as a final rush to beat the deadline. After that, experts predict a sharp drop in volumes. Air rates may tumble while congestion and delays spike temporarily. Airlines could redeploy freighters to other regions, further reshaping global logistics.
What Retailers Are Doing Instead
Retailers are pivoting fast. Companies like Portless are turning to consolidated shipping. They bring goods in bulk to the U.S., clear customs once, and then fulfill orders from domestic warehouses. This shift from direct-to-consumer (DTC) to business-to-business-to-consumer (B2B2C) reduces per-unit shipping costs and streamlines customs compliance.
It’s a tough transition. Ocean freight is slower, and U.S. warehousing is expensive. And not every product can be stocked in advance. With tariffs rising and regulations tightening, many companies have no choice.
Broader Trade Impact
Trump’s “Liberation Day” tariff plan affects global trade. He proposes a 10% baseline tariff on all trade partners, 25% on vehicles and parts, and up to 34% on goods from China. If he adds the extra 50%, Chinese imports may face tariffs as high as 84%.
China, in response, is fighting back with its own tariffs and new export controls on critical raw materials like rare earth elements. These are essential for electronics, electric vehicles, and high-tech manufacturing, so the ripple effects extend beyond fashion and gadgets.
So, Will Trump Do Tariffs?
He already started. And he may continue.
For e-commerce sellers, freight companies, and buyers, this shift affects how goods move and what they cost. From Shenzhen to Chicago, the price of global trade just increased.
How Airsupply Can Help
In this fast-changing trade environment, you need an experienced logistics partner. ASLG offers customized freight solutions tailored to today’s challenges. From optimizing consolidated shipping routes to ensuring compliance with evolving customs rules, ASLG helps e-commerce sellers and importers minimize costs and avoid delays.
Whether you’re navigating the new tariff landscape or planning for long-term supply chain resilience, ASLG delivers trusted freight services that keep your business moving.
