## Trump’s Tariff Plan Threatens the Era of Cheap Online Shopping
Donald Trump’s proposed tariff plan is poised to significantly impact online shoppers who rely on inexpensive goods shipped directly from China. The plan targets a previously little-noticed rule that allowed US consumers to avoid tariffs on low-value packages, a practice known as the *de minimis* exemption.
This exemption allowed packages valued under $800 to enter the US duty-free. In 2024 alone, nearly 1.4 billion packages entered the US claiming this exemption, with the vast majority originating from China. Shoppers, and the retailers they purchase from, have unknowingly become very reliant on this rule.
While the removal of this exemption was initially paused in early February, allowing companies like Temu and Shein to continue importing goods without duties, the reprieve is now over.
As of May 2nd, low-value packages from China and Hong Kong face significant tariffs under Trump’s new policy. Packages valued under $800 and shipped through the international postal network (such as USPS) will be subject to a hefty fee of 90 percent of the package’s value or $75 per postal item, whichever is higher. Other packages, seemingly those transported by services like DHL, will face all standard duties.
The implications for consumers are clear: the era of cheap online shopping from Chinese retailers may be coming to an end. Expect to see higher prices and potentially longer shipping times as these tariffs take effect.
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