Trump’s tariff plan is a potential death blow to your cheap online shopping
Trump’s tariff plan is a potential death blow to your cheap online shopping
President Trump’s new tariff plan will significantly increase the cost of online shopping packages coming from China.
The de minimis exemption, which allowed low-value packages to enter the US duty-free, has been removed and will no longer be in effect as of May 2nd.
Packages valued under $800 sent through international postal networks (e.g. USPS) will now face a 90% tariff or a flat fee of $75 per item.
Parcels transported by services like DHL will also face all applicable duties, rather than the previously exempted low-value packages.
With President Donald Trump’s new tariff plan, your online shopping packages coming directly from China are about to get much more expensive.
In February, the Trump administration moved to get rid of a little-known rule that allows US consumers to avoid tariffs on low-value packages. The de minimis exemption meant that packages valued under $800 could enter the US duty-free, and shoppers – as well as retailers – relied on the exemption regularly, even if they didn’t realize it. Nearly 1.4 billion packages claiming the exemption entered the US in 2024, the majority of which came from China. The removal of this exemption has been paused since early February, meaning Temu and Shein packages have been able to flow into the country without duties. But no longer.
As of May 2nd, low-value packages from China and Hong Kong will get tariffed based on Trump’s new taxes: packages valued under $800 and sent through the international postal network (think USPS and the like) will get slapped with a fee of 90 percent of the value of the package or $75 per postal item. Other packages (which appears to mean parcels transported by services like DHL) will instead get hit with all the duties they h …
Q. What is the Trump administration’s new tariff plan?
A. The Trump administration’s new tariff plan aims to increase costs for online shopping packages coming directly from China.
Q. Why did the Trump administration remove a little-known rule in February?
A. The Trump administration removed a rule that allowed US consumers to avoid tariffs on low-value packages valued under $800, which was known as the de minimis exemption.
Q. How many packages claimed the de minimis exemption in 2024?
A. Nearly 1.4 billion packages claiming the exemption entered the US in 2024, with most coming from China.
Q. What is the new tariff rate for low-value packages from China and Hong Kong?
A. Packages valued under $800 sent through the international postal network will get slapped with a fee of 90 percent of the value of the package or $75 per postal item.
Q. How much will other packages be hit with in duties?
A. Other packages (parcels transported by services like DHL) will instead get hit with all the duties they had previously been exempt from.
Q. When did the removal of the de minimis exemption pause?
A. The removal of the de minimis exemption was paused since early February, allowing Temu and Shein packages to flow into the US without duties.
Q. What is the effect of the new tariff plan on online shopping in the US?
A. The new tariff plan will make online shopping packages coming directly from China much more expensive for US consumers.
Q. Which postal services are affected by the new tariff rate?
A. Packages sent through the international postal network (think USPS and the like) will be hit with a 90 percent tariff or $75 per postal item.
Q. What is the value threshold for packages to get exempt from duties under the de minimis exemption?
A. The value threshold was previously $800, but has been removed by the Trump administration’s new tariff plan.
Q. How long did the removal of the de minimis exemption last before being paused again?
A. The removal of the de minimis exemption lasted for about 3 months (from February to May) before being paused again due to the new tariff plan.
