Cheap e-shopping just ended in US as Trump plugs de minimis tariff loophole

For years, Chinese e-commerce giants like Shein and Temu thrived on a trade loophole that let them ship cheap goods to the US without paying tariffs, which President Trump has now ended

The days of cheap Chinese goods in the US are coming to an end. For years, Chinese e-commerce giants like Shein and Temu thrived on a trade loophole that let them ship cheap goods to the US without paying tariffs. Starting May 2, the US will scrap a decades-old rule that allowed imports under $800 to skip duties — if they came from China or Hong Kong. The move is part of Donald Trump’s renewed trade crackdown, and it could reshape global supply chains and hit shoppers worldwide with higher prices and slower deliveries.

 

That rule is now history — at least for packages from China and Hong Kong.

 

 

As part of his intensifying trade war with China, President Donald Trump signed an executive order ending the de minimis exemption for goods entering the US from those territories. The new rule takes effect on May 2 and is expected to cause widespread disruption in global e-commerce.

 

Why the de minimis exemption existed and why it’s ending? 

Originally, the de minimis provision was meant to streamline customs operations. It made little fiscal sense for the government to spend more money in collecting tariffs than the tariffs themselves were worth. Many countries maintain similar policies, but the US’s $800 threshold is among the world’s highest.

 

Trump’s executive order argues that the exemption has been exploited by Chinese shippers to send in illegal or unsafe items — including synthetic opioids — under the radar. The order cites “deceptive shipping practices” that allow dangerous substances to enter the country in low-value parcels.

 

National security concerns aside, lawmakers from both parties (Republicans and the Democrats) have also long claimed that the de minimis rule undermines American manufacturers, hurts unionised workers, and floods the market with counterfeit goods.

 

Biden administration was also urged to end the tariff loophole 

Pressure to end the exemption for China has been building for years. In 2024, 126 House Democrats urged the then President Biden to revoke it, citing everything from labour concerns to national safety. The Biden administration proposed new restrictions the same year, pushing for tighter data collection and the exclusion of certain product categories like apparel and textiles.

 

While Biden stopped short of taking executive action, Trump has now seized the initiative, delivering a policy win for domestic manufacturers — especially textile and garment industries that have lobbied heavily for the change.

 

How will ending de minimis affect prices and shipping to the US? 

Within days of the announcement, Chinese-based e-commerce platforms Shein and Temu warned US customers to expect price hikes starting April 25. Hong Kong’s postal service has temporarily suspended deliveries to the US, and major players like Amazon, which fulfils many orders from China, may also be impacted.

 

US consumers could see higher prices and longer delivery times. Previously, the de minimis exemption allowed for fast, frictionless shipping. Now, shippers will need to file customs paperwork for each package and pay duties—adding time and costs to the process.

 

When a similar suspension of the rule occurred briefly in February, nearly a million packages piled up at JFK Airport in just two days, clogging the system.

 

Workarounds and unintended consequences

 

Despite the rule change, businesses may find ways to circumvent the new restrictions. One common workaround is the so-called “Tijuana two-step”, wherein a shipment from China is broken into smaller packages in a third country like Mexico and then sent into the US, still qualifying under that country’s de minimis status.

 

There are also doubts about whether this policy will truly curb the entry of fentanyl and other synthetic opioids. While China is a known supplier of precursor chemicals, most fentanyl enters through the southern border. Experts argue that more targeted detection tools might be more effective than blanket trade restrictions.

 

Will American manufacturing benefit? 

Some industry groups, like the National Council of Textile Organizations, have welcomed the policy, arguing that it levels the playing field for US manufacturers.

 

But others are sceptical. The cost of textile labour in the US is significantly higher, and there’s little evidence that American workers are eager to take up these jobs. Meanwhile, consumer demand for affordable fashion and fast delivery continues to rise.