# The Era of Cheap Imports Ends: New US Tariffs Target Chinese Goods

## The Era of Cheap Imports Ends: New US Tariffs Target Chinese Goods

The days of ultra-cheap goods flooding the US market from China may be coming to an end. As of today, May 2nd, 2025, the de minimis exception, a loophole that allowed businesses to import low-value goods from China and Hong Kong duty-free, has expired. This change, enacted through an executive order signed last month by President Trump, is set to significantly impact both businesses and consumers.

The de minimis exception has been a cornerstone of the US import system, allowing any package valued under $800 to enter the country without incurring duties. This provision fueled the rise of fast-fashion giants and discount online retailers, making electronics, toys, and clothing from companies like Shein and Temu incredibly accessible and affordable for American buyers. In 2024 alone, approximately 1.4 billion packages entered the US claiming exemption under de minimis, highlighting the widespread reliance on this loophole.

Now, businesses and consumers alike will face the consequences. Retailers like Shein and Temu have already begun to raise prices in anticipation of the new tariffs. The Trump Administration’s policy introduces a significant barrier: a choice between a 30 percent fee on the value of each package shipped to the US, or a flat fee of $25 (increasing to $50 on June 1st). Postal carriers will be responsible for choosing the method and applying it consistently to all parcels.

These new fees build upon existing tariffs implemented last month, which saw substantial increases on most Chinese goods, sparking an escalating trade war. The initial tariffs rose to a staggering 145 percent import tax increase on some items. In response, China retaliated by imposing a 125 percent fee on US goods, further complicating the trade relationship between the two economic giants.

The expiration of the de minimis exception and the implementation of these new tariffs mark a significant shift in US trade policy. While the long-term impact remains to be seen, it’s clear that American consumers will likely face higher prices, and businesses will need to adapt to a new landscape of international trade. The era of ultra-cheap imports from China, it seems, is officially over.