Trump’s tariffs mean the days of ultra-cheap online shopping from international retailers are coming to an end. Starting today, the long-standing exemption on import tariffs for packages valued under $800—known as the “de minimis” exemption—has been eliminated for shipments from China, a move that will dramatically impact consumers who have grown accustomed to suspiciously cheap e-commerce goods from sites like Shein and Temu.
While the exemption remains in place for countries other than China, the Trump administration has indicated it plans to eventually eliminate those carve-outs as well. Here’s how the end of this tariff loophole will impact you, and what you can do to make the most of it.
What’s is the de minimis exemption, and why is it ending?
Previously, packages valued under $800 entered the United States without any import duties or tariffs. This loophole allowed e-commerce platforms like Shein, Temu, and the TikTok Shop to flood the U.S. market with incredibly low-priced goods shipped directly from overseas manufacturers, bypassing traditional import taxes that domestic retailers face.
The Trump administration officially ended this exemption today for packages originating in China, which has thus far borne the brunt of the president’s restrictive tariff policies. Without the de minimus exemption, even your $15 t-shirt or $5 phone case will now be subject to tariffs when shipped from China.
How will this affect your wallet?
According to Krista Li from Indiana University’s Kelley School of Business, whose research focuses on online shopping behaviors, the impact will be significant: “The end of the de minimis exemption means that many low-cost goods, such as fast fashion and apparel, small electronics, home kitchen goods, toys, and beauty products, shipped directly to U.S. consumers via postal services, particularly from international e-commerce platforms such as Shein and Temu, will now be subject to a baseline tariff as high as 145%.”
What does that mean in practical terms? That $10 blouse from Shein could potentially cost $24.50 after tariffs. Those $15 wireless earbuds from Temu might jump to $36.75.
Beyond price increases
The changes go beyond just higher prices. Li explains that consumers should higher prices, yes—but also fewer ultra-cheap options, potentially fewer varieties, and slower delivery times as manufacturers and retailers adjust to the new cost structure. “Consumers may make fewer impulse purchases of inexpensive imported goods and be more price-conscious,” according to Li.
Shipping times may also increase as customs processing becomes more complex. Many international retailers are scrambling to adjust their operations, with some considering opening U.S. warehouses to mitigate the impact—though this would likely still result in higher prices to cover these new expenses.
What this means for different online retailers
There are a lot of reasons you might want to curb your online shopping habit (the environment, your budget, being buried under mountains of stuff, etc.). But with the closing of the de minimis loophole, you’ll need to brace yourself for a financial impact.
Fast fasion sites (Shein, Temu)
These platforms will likely be hit hardest, as their entire business model is built around extremely low prices achieved partly through the de minimis loophole. Expect significant price increases or potential changes to their shipping and fulfillment strategies. (Temu has already announced plans to stop shipping direct to consumers from China, and will rely instead on “locally based sellers” to fulfill orders.)
Amazon and major U.S. retailers
Established U.S. retailers may actually benefit from the change, as it levels the playing field against international competitors who previously enjoyed tax advantages. However, many Amazon Marketplace sellers source products from overseas, so certain categories may still see price increases.
In response to earlier tariff changes, Amazon briefly considered displaying tariff costs separately in product pricing, though they ultimately reversed course; the White House accused the company of a politically motivated “hostile act” against the administration.
Small businesses
American small businesses have long complained that the de minimis exemption created an unfair advantage for foreign sellers who could ship goods without tariffs. This change may help domestic sellers compete more effectively, but the main takeaway here is that U.S. consumers will bear the cost. Meanwhile, U.S. based businesses that rely on importing goods from China to resell will have to choose between lowering profit margins, charging higher prices, or sourcing goods U.S. made goods (which simply won’t be possible for some sellers, as no U.S. made alternatives exist).
How to minimize the impact of tariffs when shopping online
As prices rise on international platforms, consider these strategies to avoid taking a tariff-related hit to your wallet:
Buy in bulk when possible: Consolidating purchases may help offset some shipping and processing costs.
Look for U.S.-based alternatives: Many domestic retailers have been forced to become more competitive in recent years. When it comes to Shein and Temu specifically, I recommend turning to secondhand markets like Depop.
Check retailer policies: Some international retailers may absorb a greater portion of the tariff costs than others in a bid to maintain market share.
Be strategic about big sales: Major sale events may offer better value as retailers try to maintain volume despite the new tariffs. Stay on top of what deals are available before you check out.
The bottom line
What’s clear is the end of an era for seemingly impossibly cheap goods arriving directly from overseas, at least for the time being. But on the bright side, perhaps this hit to your wallet can be a wake-up call to curb your online shopping addiction. I mean, those impossibly low prices were impossible for a reason—the manufacturers rely on unfair wages, low-quality goods, and cutting corners. Maybe it’s time to bring a little more intention to your shopping habits.
Unfortunately, it won’t end here either. Keep bracing yourself for impact of the ongoing trade war, and be prepared to continue to alter your personal shopping habits. As my colleagues at Mashable point out, given the tariff-related price increases we’ve seen so far, we can expect to see more import taxes passed on to U.S. consumers going forward.
