(CNN) – It\u2019s the end of an era as billions of packages of so-called \u201ccheap\u201d goods shipped to the United States are now subject to steep tariffs.<\/p>\n
As of Monday, a loophole that had reshaped the way countless Americans shopped has expired.<\/p>\n
It\u2019s a big change for American customers looking to buy low-value goods from abroad.<\/p>\n
After nearly a century, the \u201cde minimus rule,\u201d which has allowed some packages to enter the United States duty-free or exempt from certain taxes, is no more.<\/p>\n
\u201cIt\u2019s a massive impact,\u201d Sean Henry, CEO and cofounder of Stord, said.<\/p>\n
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.<\/p>\n
\u201cIn 2012, there was only $50 million of inventory entered the U.S. under this exemption. And last year that was over $65 billion,\u201d Henry said.<\/p>\n
Now following this latest trade move from the Trump administration, all imported goods \u2014 regardless of value \u2014 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.<\/p>\n
As a result, a slew of delivery services from countries across the world have suspended shipping some small packages to the U.S.<\/p>\n
\u201cIt 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\u2019s the new fee for the effective duties and tariffs,\u201d Henry said.<\/p>\n
So, what could be impacted?<\/p>\n
Trendy sunscreens and serums from Korean beauty websites, matcha from online Japanese vendors and even recently popular tinned fish from European sites.<\/p>\n
It is a potential benefit to some American small businesses.<\/p>\n
\u201cWhat they\u2019re trying to do is have people buy local,\u201d Emil Stefanutti, cofounder and CEO of Gaia Dynamics, said. \u201cWhether that\u2019s realistically possible, we\u2019ll have to see.\u201d<\/p>\n
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