(CNN) – It’s the end of an era as billions of packages of so-called “cheap” goods shipped to the United States are now subject to steep tariffs.
As of Monday, a loophole that had reshaped the way countless Americans shopped has expired.
It’s a big change for American customers looking to buy low-value goods from abroad.
After nearly a century, the “de minimus rule,” which has allowed some packages to enter the United States duty-free or exempt from certain taxes, is no more.
“It’s a massive impact,” Sean Henry, CEO and cofounder of Stord, said.
Since 2015, the exemption applied to packages worth less than $800. That allowed ultra-low-cost ecommerce sites to take off, as they sold and shipped everything from clothing to furniture to electronics directly to American shoppers.
“In 2012, there was only $50 million of inventory entered the U.S. under this exemption. And last year that was over $65 billion,” Henry said.
Now following this latest trade move from the Trump administration, all imported goods — regardless of value — are subject to 10 to 50% tariff rates, depending on their country of origin. Or in some cases, a flat fee of $80 to $200, but just for the next six months.
As a result, a slew of delivery services from countries across the world have suspended shipping some small packages to the U.S.
“It is probable that you may see not only delays in those packages getting here even farther, but often start to see items pop up in the cart saying, here’s the new fee for the effective duties and tariffs,” Henry said.
So, what could be impacted?
Trendy sunscreens and serums from Korean beauty websites, matcha from online Japanese vendors and even recently popular tinned fish from European sites.
It is a potential benefit to some American small businesses.
“What they’re trying to do is have people buy local,” Emil Stefanutti, cofounder and CEO of Gaia Dynamics, said. “Whether that’s realistically possible, we’ll have to see.”
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