Overview
- Shein and Temu implemented price hikes on April 25, with some items rising by as much as 91%, ahead of the May 2 expiration of the de minimis duty-free exemption.
- President Trump's executive order ends the decades-old exemption for imports under $800 and imposes tariffs of up to 145% on Chinese goods.
- The price increases disproportionately affect low-income households, which receive nearly half of all de minimis shipments, according to research from UCLA and Yale economists.
- U.S. Customs is preparing for an increase in inspections and paperwork for low-value shipments, potentially leading to longer delivery times.
- The policy change is part of a broader effort to address trade imbalances, protect domestic industries, and curb illicit trade and counterfeit goods.