The move was announced Tuesday, coming after the U.S. imposed an additional 10% tariff on Chinese goods and ended a customs exception that allowed small value parcels to enter the U.S. without paying tax. Canada and Mexico managed to negotiate a month-long reprieve from 25% tariffs threatened by U.S. President Donald Trump.

The move will likely have an impact on e-commerce platforms like Shein and Temu along with operators of drop shipping businesses.

Chinese packages under $800 were exempt from tariffs due to the "de minimis" exemption, now ended under new U.S. rules that came into effect Tuesday.