Quick Summary
- Donald Trump’s administration has officially eliminated the “de minimis” exemption for packages under $800 from China.Previously, these goods entered the U.S. tariff-free but will now face import duties.
- Platforms like Shein and Temu, which heavily rely on this loophole too sell ultra-cheap goods directly from China, will see significant price increases or changes in shipping strategies.
- tariffs could go as high as 145%, potentially increasing item prices drastically-e.g., a $10 blouse becoming $24.50 after tariffs.
- Prices aside, consumers may face slower delivery times due to customs complexities and reduced availability of cheap options as retailers adapt their operations.
- Some online platforms like Temu are exploring alternatives such as using U.S.-based sellers rather of direct shipments from China.
- Domestic retailers may benefit since the change levels the playing field against foreign competitors enjoying tax advantages.
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