US President Donald Trump’s decision to end a policy allowing packages from China worth less than $800 to enter the country free of import taxes and customs procedures has sparked concerns among consumers. The move, backed by traditional retailers, aims to curb the rise of cheap imports but may increase prices for shoppers.
Under the previous policy, known as “de minimis”, low-value packages were exempt from tariffs, customs inspections, and other regulatory requirements. However, with the new tariffs in place, e-commerce brands are warning that smaller firms could fail due to increased costs.
Deborah Grushkin, a 36-year-old online shopper from New Jersey, recently spent $400 on items from Shein after the change took effect. “I felt like maybe it was my last sort of hurrah,” she said, expressing her surprise at the price increase.
Economists estimate that ending de minimis will lead to new costs of at least $10.9bn, disproportionately affecting lower-income and minority households. Advocates argue that the previous policy allowed companies to abuse rules meant for gifts between family and friends, while allowing counterfeit or safety-violating products to slip into the country.
Businesses are taking the changes seriously, with Shein and Temu warning customers of price hikes. However, some smaller brands may struggle due to the tariffs, with manufacturers like Indochino and CUTS considering price increases and job cuts.
The US Customs and Border Protection denies that the move will undermine enforcement, but experts warn that the new regulations could make it difficult to collect tariffs or inspect products effectively. The shift has raised concerns about consumer affordability, with many shoppers expressing frustration at the increased costs.
Source: https://www.bbc.com/news/articles/c4g2j45d5zeo