Starting Friday, U.S. consumers will see price hikes on millions of imported goods as former President Donald Trump’s executive order takes effect, ending the long-standing “de minimis” tariff exemption for small-value packages from China and Hong Kong. The exemption, which allowed items under $800 to enter the country duty-free, has been a critical loophole for low-cost e-commerce platforms like Temu and Shein, as well as for small independent sellers relying on Chinese suppliers.
Under the new policy, all such shipments will face a 120% tariff or a flat fee starting at $100, which will double to $200 by June 1. This abrupt shift is already being felt by consumers, with prices on common items—ranging from beauty products to clothing—spiking as companies pass on the added costs. For example, Shein has raised prices on its top health and beauty items by an average of 51%, with some more than doubling in price.
The Trump administration justifies the move as a crackdown on unfair trade practices and an effort to curb illicit imports, including substances used in fentanyl production. “It’s a big scam going on against our country, against small businesses—and we’ve ended it,” Trump declared during a recent cabinet meeting.
The U.S. previously had the world’s highest de minimis threshold, compared to $40 in Canada and $150 in the EU. In 2024 alone, roughly 4 million packages per day claimed the exemption. The policy change may soon extend beyond China and Hong Kong, as the U.S. prepares systems to collect tariffs on low-value shipments from all countries.
Major logistics companies, including DHL, are awaiting further guidance on how these changes will be implemented, particularly how customs will differentiate between formal and informal clearances. The coming weeks are expected to bring significant disruption to e-commerce patterns and international shipping logistics.