President Trump has signed an executive order that increases tariffs on low-value packages sent from China to the United States through the international postal system.

Starting May 2, Trump set a tariff of 30% or $25, whichever is greater, on packages valued at less than $800.

The new rate will be 90% of the shipment’s value or $75, increasing to $150 after June 1.

Until this year, shipments valued under $800, known as de minimis packages, were exempt from tariffs.

This tariff-free category significantly benefited Chinese online giants Shein and Temu, which ship goods directly to U.S. customers via international post.

On Monday, Trump threatened to increase existing tariffs on China by 50% on Wednesday unless Beijing removed its retaliatory duties on U.S. goods by Tuesday.

That same day, he specified that China had a deadline of “12 o’clock” to lift its tariffs.