If you’re someone who shops from international websites like Amazon, Shein, or Temu, here’s some important news. Due to a major policy change in the US, many products shipped from countries like China will now become more expensive and take longer to arrive.
This shift is happening because the US government is ending a long-standing import rule known as the “de minimis exemption”, which had allowed cheaper items to enter the country without paying taxes.
What Was the De Minimis Rule?
The de minimis rule was created way back in 1938. It allowed small, low-value items to be imported into the US without paying customs duties. Over time, the value limit increased – from $1 to $800 in 2015. That meant any package under $800 could enter the US duty-free.
This rule worked well for global platforms like Shein, Temu, and even Amazon, which used it to offer fast shipping and low prices by importing low-cost goods from places like China.
What’s Changing and When?
Starting May 2, the US is ending this exemption for packages from China. All items under $800 will now face high tariffs – up to 120% or a flat $100 fee, which will increase to $200 from June 1.
The move is part of former President Donald Trump’s trade policy, aimed at taxing over a billion low-cost packages that enter the US every year — more than half of which come from China.
Trump’s team says this change will help local businesses by making foreign goods less competitive. However, it’s also expected to increase prices for consumers.
What Does It Mean for Shoppers?
Shoppers on platforms like Shein, Temu, and Amazon will likely see:
Higher Prices – Products from China will cost more due to added import taxes. In fact, Shein and Temu already warned users in April that price hikes were coming.
Slower Deliveries – New customs checks mean delays. UPS and FedEx now need to provide more detailed customs info, which can slow down shipping.
Canceled Orders – Some orders from China on Amazon have already been cancelled to avoid the high tariffs.
Limited Options – With added fees and complexity, companies may stop selling certain cheap products from China altogether.
Amazon and Other Companies Respond
According to Morgan Stanley, about 25% of Amazon’s non-grocery products are sourced from China. That means even regular Amazon shoppers may notice prices rising.
In fact, a recent study found Amazon’s prices have already gone up by 4.2% on selected items since early April. Amazon even planned to show tariffs separately on product listings but dropped the idea after facing criticism from Trump.
UPS, a major shipping company, has responded to these changes by announcing job cuts and shutting down facilities, blaming the challenges caused by new tariffs.
What’s Next for Online Shopping?
As the May 2 deadline passes, expect big changes in the way international ecommerce works. With higher costs and slower shipping, shopping from platforms that rely on Chinese imports may no longer be as cheap or fast as before.
This could also lead to a shift where more shoppers turn to local sellers or companies that manufacture goods closer to home to avoid extra costs and delays.
The end of the de minimis exemption marks a turning point for global ecommerce. While the goal is to support local industries and collect more taxes on imports, the immediate impact for online shoppers is clear: higher prices, slower deliveries, and fewer cheap options. Whether you’re buying clothes, electronics, or daily essentials, it’s time to be prepared for some noticeable changes in your online shopping experience.