A loophole was closed on Friday that allowed American shoppers to buy a bunch of cheap items from mainland China and Hong Kong without paying fees and filling customs forms.
Prices have already risen.
Many imported orders from retailers like Shein and Temu can decrease as consumers alk at higher prices and new inconveniences. But like many of Trump's trade wars, the administration's policies on loopholes have experienced change. The president ordered the loophole to be closed in February, but within days it was restored. Logistics experts said the short closure was caused by a pile of packages at the border.
What exactly is gone?
From 2016 onwards, items under $800 may be imported into the United States without having to submit duties to the recipient's payment or documents relating to foreign purchases. The loophole is known as the de minimis exemption. Trump has eliminated the exemptions for mainland China goods and Hong Kong only, the largest source of shipments.
This year's Congress report said customs and border security handled the minimum packages over 1 billion a year. The average shipment value for 2023 was $54.
Shipping under $800 is exempt from shipments, as Congress believes it will not justify customs revenue. Trump has ended his exemption. It seeks to prevent the flow of fentanyl and fentanyl precursor materials to the United States through Deminis shipments.
Deminimis shipments have swelled after Trump imposed tariffs on China in his first administration.
How is this a shopper?
Due to increased penalties on Chinese goods, minimal goods are already beginning to cost more.
That's clear to shoppers at Chinese e-commerce site Temu. The company recently began detailing the costs that tariffs add to purchases.
For example, a 10-item cart from Temu, including a 50-pack heavy duty hanger for $70.50, a $19.38 men's green linen shirt and a fluffy pink dog bed for $24.05, went up to $275.03, including international freight charges and $10.20 in sales tax. However, upon checkout, the website tucked $343.26 in import fees, totaling $628.49. (Temu offers shoppers the option to purchase marked items from local warehouses that have not earned import fees.)
Temu's rival Shein has now carts for 10 similar items at $244.03. Shein's website does not provide any detailed information on additional import fees for the product, but it told shoppers:
Still, shoppers said they saw the prices of some items on Shein's website over the weekend. The tariff exemption is not expected to end until Friday, but the fees have already appeared as orders placed now do not cross the border until then.
Lindsay Olive of Atlanta, who regularly shopped in Shane, put a lot of summer dresses in her cart last week. This includes a blue one for $10.88 and a floral dress for $11.29. When she checked out this weekend, the price of the blue dress rose to $13.88, while Floral jumped to $15.43.
“I knew things would start to rise in prices and I wanted to get a summer dress before that happened,” said Olive, 39. She expects prices to rise further.
Amazon said Tuesday it had reviewed the details of import fees on the site's side, called Amazon Haul, which would compete with Temu but decided not to.
“The team always discusses ideas,” spokesman Ty Rogers said in a statement. He said he didn't consider the main Amazon site, adding, “This will never be approved and will not be happening.”
Import fees may vary depending on the shipping method of the product. When appearing in high-speed carriers like DHL or FedEx, products are subject to a 145% tariff or a $14.50 tariff for a $10 T-shirt.
From Friday, freight posted through the postal service will face tariffs equivalent to 120% of the value of the item, or a fee of $100 per package. Fees will increase to $200 in June.
How about the documents?
One of the conveniences of minimum shipping is that you do not need to provide a Social Security number to get the item, as with other types of imports.
Instead, de minimis products only require a name and address.
As of Friday, the minimum shipments from China will be classified as “unofficial entry” imports. Unofficial admission items worth up to $2,500 do not require the recipient's Social Security number, Customs and Border Protection said in a statement. Still, the agency said in January that carriers often need a Social Security number to speed up clearance through customs.
FedEx said it would not require a Social Security number on shipments from China that will lose the minimum exemption on Friday, in accordance with customs and border security requirements. DHL said it does not require a Social Security number on unofficial invasion cargo. UPS declined to say whether a Social Security number is required, but the company added that it has the expertise to help its customers “navigate global trade and follow all applicable laws and regulations.”
A post office representative said it “has no role in collecting mandatory items for minimal postal shipping.” Instead, the fee must be collected by the carrier bringing the goods to the US.
Is there a delay?
Collecting customs duties and checking far more packages can be challenges for carriers, customs and border protection. However, it is not clear whether these actions will take more than a day or two or delay the packaging much longer.
In a statement, Customs said that, “although they have a big job in their hands,” it is “in a unique position to implement and enforce the president's tariffs.”
Ana Swanson and Madeleine Ngo contributed the report.
