On May 2, the US plans to eliminate the tariff exemption that has helped China’s ecommerce platforms thrive by shipping low-cost goods duty-free from China. The move follows the imposition of a 145% universal tariff on imports from China, which took effect on April 9. TikTok Shop, Temu, and Shein have become formidable retail disruptors over the past few years, but their market positions are now threatened by these twin blows from the US-initiated trade war.

This FAQ examines how escalating trade tensions are reshaping China-based ecommerce operations in the US and the spillover implications for US retail and advertising.

Key Stat: Nearly 30% of US consumers would immediately stop shopping or shop less on China-based ecommerce marketplaces if tariffs raise prices, per a February 2025 Omnisend survey.