A major shipping loophole has expired, leaving many Americans with higher costs for cheap Chinese goods. The de minimis exemption, which allowed shipments of goods worth $800 or less to enter the US duty-free, ended on Friday. This change will likely more than double the cost for ultra-low-cost e-commerce sites like Shein, Temu, and AliExpress.
The exemption helped shape American consumer behavior, allowing Chinese websites to flood US homes with affordable products, from yarn to patio furniture and clothes to photography equipment. However, as the loophole expires, a baseline tariff of 145% will take effect on Chinese imports, affecting millions of consumers who rely on these sites for cheap products.
Major carriers like UPS, FedEx, DHL, and USPS are prepared for the changes, but whether regular American shoppers are ready remains uncertain. Lower-income households will be hit hardest, as they relied heavily on the duty-free exemption to access affordable goods.
The end of the de minimis exemption simplifies trade policy by reducing it to a basic receipt, but its impact is already being felt. Shoppers have started noticing price increases from retailers like Shein and Temu, which are adjusting their business models to cope with higher operating expenses. Some shoppers are also experiencing difficulties in getting local fulfillment for online orders.
The expiration of the de minimis exemption comes as public opinion on President Trump’s policies has shifted. A recent CNN poll found that 59% of Americans believe Trump’s policies have worsened US economic conditions, with many feeling the impact on their daily lives. The president himself said the loophole was a “big scam” and vowed to end it, but for many Americans, the consequences are already being felt.
Source: https://edition.cnn.com/2025/05/02/economy/de-minimis-packages-tariff