How Trump’s De Minimis Exemption Cut Impacts U.S. Shoppers

Shelbyville Now - July 30, 2025

President Trump’s 2025 decision to eliminate the de minimis exemption—starting with China and Hong Kong on May 2 and going global by August 29—has turned online shopping upside down for Americans. The rule once allowed goods worth $800 or less to enter the U.S. tax-free with minimal customs checks. Now, its removal means higher prices, longer delivery times, and a heavier burden on low-income households. Here’s how it’s hitting U.S. consumers.

Prices Are Jumping

If you shop on platforms like Shein or Temu, brace for sticker shock. Without the exemption, these retailers face tariffs up to 54% or flat fees of $25 to $200 per item. Postal shipments get hit with a $25 fee, rising to $50 after June 1, 2025. Bloomberg reports Shein’s beauty and health products spiked 51%, with women’s clothing up 8% since May. A $20 Temu shirt could now cost $30.80 with a 54% tariff or $45 with the flat fee. That’s a serious budget strain.

The Congressional Budget Office estimates this could cost shoppers $11-13 billion annually. For everyday Americans, that means paying more for clothes, electronics, or household items—or just buying less. With living costs already climbing, this adds another layer of financial pressure.

Deliveries Are Dragging

Gone are the days of Shein orders arriving in a week. Every package now requires detailed customs paperwork, overwhelming the U.S. Postal Service and Customs and Border Protection. A February 2025 trial run of this policy left over a million packages stuck at ports like JFK. With the global cutoff in August, expect similar delays. A Temu order that took 5-7 days might now take 2-3 weeks.

These delays disrupt plans. Need a dress for an event or school supplies in a hurry? You’re out of luck. Shoppers on X, like @ankurpandeyIND, are frustrated, saying this “squeezes the middle class” by making affordable goods harder to get.

Low-Income Shoppers Bear the Brunt

This policy hits low-income and minority households hardest. Research shows these communities relied on de minimis shipments for affordable clothing and essentials. Shein was a go-to for families on tight budgets. Now, a single parent earning $30,000 might have budgeted $50 a month on Temu for kids’ clothes. With $10-$25 added per item, they’re forced to cut back or stretch their budget thinner.

Wealthier shoppers can pivot to Walmart or Amazon, but those don’t always match the variety or prices of foreign e-commerce. For the most vulnerable, it’s a tough choice: pay more or go without. This widens the gap for families already struggling to make ends meet.

Shopping Habits Are Changing

With foreign goods pricier and slower, Americans are rethinking how they shop. Shein and Temu are shifting to U.S. warehouses to avoid some tariffs, but prices remain higher than before. Temu now uses local sellers for U.S. sales, which may speed up deliveries but doesn’t bring back the old deals. X users mention turning to thrift stores or apps like Poshmark, while others might shop less altogether.

This could boost U.S. retailers, but the trade-off is less variety and higher costs. The era of snagging a $10 dress from China is fading, pushing shoppers toward local or secondhand options that may not feel as convenient or budget-friendly.

Long-Term Fallout

This isn’t just about cost—it’s about lifestyle. Higher prices could drive inflation, leaving less money for other expenses. Trump argues this stops fentanyl smuggling and supports U.S. businesses, but there’s no clear evidence it’ll curb drug shipments much. Customs already screens packages, and extra paperwork might just clog the system.

For consumers, the shift is real. The ease and affordability of global online shopping are slipping away. Low-income families face the biggest challenges, while everyone deals with pricier goods and longer waits. By August 2025, when the global ban fully hits, Americans will need to adapt—less choice, higher costs, and more hassle are the new normal.