US tariff crackdown spurs AliExpress, Temu to deepen Korea push

The US government's decision to scrap tariff exemptions on low-value imports from China is expected to accelerate Chinese e-commerce giants’ expansion into the Korean market, adding pressure to domestic platforms already struggling to stay competitive.

On April 2, US President Donald Trump signed an executive order ending the de minimis rule, which had exempted shipments under $800 from tariffs. Starting May 2, all goods below that threshold shipped from China and Hong Kong will be subject to either a flat 25 percent tariff or a rate equal to 30 percent of the item’s value.

According to US authorities, more than 1.4 billion duty-free packages entered the country in 2024, with 60 percent coming from China. US consumers, whose purchasing power has been eroded by inflation, had reportedly relied on ultra-cheap Chinese goods via online platforms — benefiting from the de minimis exemption.

Now, with that exemption removed, Chinese e-commerce firms are likely to lose their price advantage in the US market due to increased tariffs and tighter customs scrutiny.

As a result, major Chinese platforms like AliExpress, Temu and Shein — facing growing barriers in the US — are expected to step up their expansion into Korea.

These platforms have already gained significant traction in Korea. As of February, AliExpress had 8.73 million monthly active users, and Temu had 7.84 million — ranking second and third among general e-commerce apps behind only Coupang, according to WiseApp data.

“China seems to have anticipated potential policy shifts in the US and strategically prepared and invested in secondary and tertiary overseas markets,” said an official at a leading Korean e-commerce platform.

“Based on our analysis last year, once Korean consumers switch to Chinese platforms, they rarely return due to the vast price differences. To counter this, many Korean e-commerce firms are now developing ‘premium product sections.’ Ultimately, only platforms that maintain a trusted, quality-focused premium image will survive the competition.”

On top of aggressive pricing, the domestic industry is feeling the heat as Chinese platforms broaden their offensive — extending into logistics and the recruitment of local sellers.

AliExpress is expanding its logistics partnership with CJ Logistics, strengthening an integrated supply chain from customs clearance to last-mile delivery.

Temu, which recently announced its direct entry into Korea, has signed a long-term lease for a massive logistics center in Gimpo, according to industry sources. The facility spans 165,000 square meters and features 11 floors equipped with both standard and cold-chain capabilities. Its location near key logistics hubs — Incheon International Airport, Gimpo Airport, and Incheon Port — adds to its strategic advantage.

Meanwhile, concerns persist over perceived tax and cost imbalances favoring Chinese e-commerce players. Industry insiders argue that Chinese platforms benefit from their foreign business status, allowing them to bypass local consumption and corporate taxes — unlike Korean companies, which must shoulder full tax and employment burdens.

“As long as they’re selling to Korean consumers, they should be properly monitored under domestic law,” said an e-commerce insider in Seoul.

“Even though Chinese platforms have offices in Korea, they often list just an address without disclosing staff or operational details. There are many rumors but little verified information. This lack of transparency could ultimately harm consumers.”

Regarding the US tariff policy, Korean e-commerce firms say they haven’t seen any immediate impact.

“We’re not currently exporting to the US, so there’s no direct effect,” said one industry source.

“However, since we do import products from the US, if prices rise there due to the new tariffs, the same items could become more expensive for Korean consumers as well — ultimately affecting our business.”