Cheap goods from China on Americans\u2019 go-to websites \u2014 from Amazon to Temu \u2014 are suddenly way more expensive.<\/p>\n
That\u2019s because the \u201cde minimis\u201d exemption for Chinese imports expired Friday by order of President Donald Trump. Under that exemption, shipments of goods whose total value is less than $800 were exempt from tariffs \u2014 a threshold that included for most purchases individual Americans make from China.<\/p>\n
Those days are over. As of Friday, Chinese imports that would have previously fallen under the de minimis exemption are \u201csubject to a duty rate of either 30% of their value or $25 per item (increasing to $50 per item after June 1, 2025),\u201d according to the White House.<\/p>\n
Americans will pay the price as retailers pass on increased import costs to consumers. And given how many de minimis shipments arrive in the US every day, that price could be high. <\/p>\n
A growing number of foreign imports have fallen under the de minimis exemption in the last decade. Between 2015 and 2024, the volume of de minimis shipments increased from 134 million to nearly 1.4 billion<\/a>. <\/p>\n China accounted for the majority of them by far. In 2023, 62 percent of all de minimis shipments<\/a>, valued at roughly $33.8 billion, came from China. <\/p>\n A few factors might be behind the explosion in de minimis shipments, especially from China. <\/p>\n For one, the de minimus exemption has been on the books since 1930, but Congress raised the threshold for qualifying goods in 2016 from $200 to $800. That made it cheaper to import more relatively low-value items. <\/p>\n The way Americans shop has also changed. Online, direct-to-consumer retail and dropshipping \u2014 when a business does not keep inventory in stock but turns to a third-party supplier to send items to its customers \u2014 has ballooned in recent years. Many of these businesses rely on Chinese suppliers being able to fulfill and send orders to the US cheaply under the de minimis exemption. <\/p>\n The end of the de minimus exemption doesn\u2019t just affect big retailers, but also small- to medium-sized businesses in the US \u2014 for example, individual sellers on Etsy and Shopify. Some such businesses have had to raise their prices and are now reporting a significant decline in US orders<\/a>, requiring them to diversify beyond the American market if they can, according to CNBC. But the loss of US customers might also force many small businesses to close<\/a> entirely. <\/p>\n","protected":false},"excerpt":{"rendered":"Cheap goods from China on Americans\u2019 go-to websites \u2014 from Amazon to Temu \u2014 are suddenly way more…\n","protected":false},"author":2,"featured_media":69813,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3090],"tags":[51,34995,1395,32,1700,1232,285,1166,16,15,8048],"class_list":{"0":"post-69812","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-business-finance","10":"tag-china","11":"tag-donald-trump","12":"tag-economy","13":"tag-money","14":"tag-politics","15":"tag-trump-administration","16":"tag-uk","17":"tag-united-kingdom","18":"tag-world-politics"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114441164226529468","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/69812","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=69812"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/69812\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/69813"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=69812"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=69812"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=69812"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}