Chronic online shoppers, beware: your budget hauls could get a lot more expensive.
What happened: Canadian Finance Minister François-Philippe Champagne says G7 countries are considering joint tariffs on cheap Chinese imports, a move targeting the surge in small packages from e-commerce platforms like Temu and Shein.
- The proposal follows the U.S.’s decision to scrap its “de minimis” rule on Chinese packages, which allowed items under US$800 to enter the country duty-free.
- The EU has also proposed a flat €2 fee per Chinese parcel sent directly to customers, while the U.K. and Japan have explored similar measures.
Why it’s happening: The White House axing the de minimis exemption has raised fears that these exporters could flood other markets, including Canada, with products to make up for lower American demand.
- Last year, the U.S. made up a quarter of the US$94 billion market for low-value Chinese exports.
- G7 governments hope that if they harmonize their rules, Chinese exporters won’t be able to dodge tariffs in one country by sending all their stuff to another.
Why it matters: A G7 crackdown on these cheap goods could help smaller domestic businesses that are being undercut by the likes of Temu and Shein, but for Canadian consumers — 39% of whom shopped on Temu between 2023 and 2024 — it would also mean paying more for their online orders.—LA