In a surprising shift that could reshape the online retail battlefield in the United States, Chinese e-commerce giants Temu and AliExpress may be poised to deepen their competitive edge over Amazon—at least for the next 90 days. This comes as the U.S. government temporarily reduces import duty hikes on goods made in China, scaling them back from a punishing 145% to a more manageable 30%. The implications of this move stretch far beyond tariff policy, potentially altering pricing dynamics and consumer habits in the world’s largest retail market.

A Timely Break for Chinese Sellers

Temu, owned by Pinduoduo (PDD), and Alibaba’s AliExpress have already carved out significant space in the U.S. market by leveraging China’s ultra-efficient manufacturing and logistics networks. These platforms have become known for jaw-droppingly low prices on everything from electronics to clothing, targeting price-conscious American consumers increasingly squeezed by inflation.

The temporary tariff relief essentially acts as a turbocharger for this strategy. With reduced import duties, the cost basis for many Chinese-manufactured goods drops substantially—providing Temu and AliExpress even more room to undercut Amazon on price. For a company like Temu, which relies on deep discounting and mass volume, a 115% reduction in duties could translate to wider margins or, more likely, even lower prices for consumers.

Amazon Under Pressure

Amazon, while still the undisputed e-commerce leader in the U.S., faces a growing threat on the pricing front. Unlike its Chinese rivals, Amazon’s seller base is more diverse and often constrained by higher sourcing and warehousing costs. Furthermore, many U.S.-based and international sellers listing on Amazon still contend with tariffs on imported goods, as well as fulfillment and advertising expenses that continue to rise.

With Temu and AliExpress enjoying reduced import duties, their pricing advantage becomes more pronounced. Consumers who once might have tolerated slower shipping from China in exchange for lower prices now find even more compelling deals. This threatens Amazon’s share of the bargain-seeking segment—a cohort that’s only grown as economic uncertainty lingers.

The Race to the Bottom—and Who Wins

For the next three months, the U.S. consumer market may become a proving ground for just how much pricing power Chinese platforms can wield when given a leveler playing field. If Temu and AliExpress are able to capture significant market share during this window, they may convert more one-time buyers into habitual users. Brand loyalty may not be their strongest suit, but the promise of dramatic savings is a powerful motivator.

Amazon, on the other hand, may find itself reassessing its value proposition. With its Prime ecosystem, fast shipping, and expansive product selection, it still dominates in convenience and trust. But even the most loyal customers have their breaking points when prices differ too dramatically.

What Happens After 90 Days?

The real question is whether this 90-day tariff reduction is merely a temporary pause or the start of a broader recalibration in U.S.-China trade relations. If duties return to 145%, the advantage for Chinese platforms could rapidly erode, making any short-term gains harder to sustain. But if the reductions persist—or if Chinese companies use this window to dramatically scale up their U.S. presence—the impact could be long-lasting.

In the short term, however, shoppers are the clear winners. With lower duties filtering down into prices, American consumers may enjoy a flood of rock-bottom deals. For retailers, the battle lines are redrawn. And for Amazon, the next 90 days could bring intensified scrutiny over whether convenience and speed can consistently beat cost.