Goods from China that were previously affordable on popular American websites like Amazon and Temu have now become pricier. President Donald Trump’s decision to end the “de minimis” exemption for Chinese imports has led to this change. This exemption allowed tax-free entry for goods valued under $800, covering most individual purchases from China. As of Friday, these imports are subject to a 30% duty rate or $25 per item, increasing to $50 per item by June 1, 2025.
Consumers will bear the brunt as retailers pass on the increased import costs. The surge in de minimis shipments, especially from China, has been significant in recent years. This change affects not only major retailers but also small and medium-sized businesses, such as individual sellers on platforms like Etsy and Shopify. Some businesses have already raised prices and are experiencing a decline in US orders, which may lead them to seek markets beyond the US or face closure.
With fewer and pricier options available to consumers, the end of the de minimis exemption does not align with the economic promises made by Trump.