US shoppers are seeing higher prices on Chinese shopping platforms Shein and Temu after President Trump closed a key import loophole. The “de minimis” exemption previously allowed packages under $800 to enter the US duty-free, helping these retailers offer ultra-low prices.
For decades, this rule helped streamline customs for small shipments. But critics argued it hurt American businesses and enabled illegal drug smuggling. The change comes after both Trump and Biden administrations raised concerns about synthetic opioids like fentanyl entering through these untaxed parcels.
Shein and Temu relied heavily on this loophole, with over 90% of their US shipments qualifying for duty-free status. Both companies recently warned customers about upcoming price increases due to “changes in global trade rules.” Some adjustments took effect April 25th.
The policy shift caused temporary chaos in February when US customs briefly suspended the exemption. Delivery services struggled to handle the sudden change, and the Postal Service stopped accepting parcels from China and Hong Kong temporarily. Officials say the permanent closure targets drug smuggling while leveling the playing field for US retailers.
As Chinese e-commerce giants adapt to the new rules, American shoppers may need to adjust to higher prices on the ultra-cheap clothing and goods that made these platforms famous.US shoppers are seeing higher prices on Chinese shopping platforms Shein and Temu after President Trump closed a key import loophole. The “de minimis” exemption previously allowed packages under $800 to enter the US duty-free, helping these retailers offer ultra-low prices.
For decades, this rule helped streamline customs for small shipments. But critics argued it hurt American businesses and enabled illegal drug smuggling. The change comes after both Trump and Biden administrations raised concerns about synthetic opioids like fentanyl entering through these untaxed parcels.
Shein and Temu relied heavily on this loophole, with over 90% of their US shipments qualifying for duty-free status. Both companies recently warned customers about upcoming price increases due to “changes in global trade rules.” Some adjustments took effect April 25th.
The policy shift caused temporary chaos in February when US customs briefly suspended the exemption. Delivery services struggled to handle the sudden change, and the Postal Service stopped accepting parcels from China and Hong Kong temporarily. Officials say the permanent closure targets drug smuggling while leveling the playing field for US retailers.
As Chinese e-commerce giants adapt to the new rules, American shoppers may need to adjust to higher prices on the ultra-cheap clothing and goods that made these platforms famous.
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