The United States has decided to end the de minimis exemption for low-value imports, a move with a direct impact on Chinese-origin platforms such as Temu and Shein. The measure, promoted by the Donald Trump administration, aims to close a massive entry route for small packages without tariffs and strengthen border controls.
The end of this preferential treatment tests the model of ultra-low prices and fast cross-border shipping which popularized both apps. Shopping for fashion, beauty, gadgets, and home appliances could become more expensive and take longer, a change that's especially sensitive for budget-conscious consumers.
What changes does the end of de minimis bring in the United States?
Until now, the de minimis regime allowed Packages worth up to $800 can enter the U.S. without paying tariffs. nor go through complex customs procedures, a gateway that boosted direct-to-consumer trade. Customs and Border Protection estimates that 92% of shipments entered under this scheme.
With the new standard, All imported products will pay tariffs, regardless of their price. In a transitional period of six months, Two charges will be applied: an ad valorem tariff (based on the value of the product) and a specific tariff per unit, which will range from approximately $80 to $200 depending on the origin. After this period, only the ad valorem tariff will be in effect.
Furthermore, All packages must be channeled through customs, with the corresponding paperwork and verifications. Strategies such as redirecting shipments through third countries—for example, Vietnam—to avoid taxes will no longer be effective in practice.
Impact for Temu and Shein and for consumers
The blow to the de minimis reduces the margins of platforms that compete on priceBoth Temu and Shein have announced adjustments in response to regulatory changes and have accelerated the implementation of measures to mitigate the impact on their operations.
Among these responses, the following stand out: Storing inventory in the U.S. and using local distributors and logistics centers, in order to reduce time and accommodate additional costs. Notices of future price increases have also been reported, along with some stock shortages and slight price fluctuations for certain items.
For the buyer, this can translate into higher prices and slightly longer delivery timesThe most affected categories include fashion, beauty, mobile accessories, small electronics, and household goods, which until now traveled as individual, low-cost packages.
The situation does not only affect Temu and Shein: other marketplaces that depend on direct imports, as third-party sellers on larger or artisanal platforms, could also pass on some of these additional costs, adjusting their assortments and promotions accordingly.
A sector under tension: commerce and fashion
The measure comes in a context of prolonged trade tensions between the United States and China, with tariffs and controls strengthened since 2018. Despite some partial agreements, frictions related to access to markets, technology, and data persist, and cross-border e-commerce has been affected.
In the retail sector, the consequences are already evident. Forever 21 files for bankruptcy protection under Chapter 11 and closed its 354 stores in the United States; according to the company, competition from platforms like Temu and Shein, which took advantage of the de minimis exemption, worsened its financial situation. The brand continues to operate its online store and international operations.
Looking ahead to the coming months, It is key how the regulatory details will be defined after the transition period.The agility with which large platforms adjust their supply chains, by warehousing locally or using internal hubs, could moderate the impact on prices and delivery times.
The end of de minimis represents a radical change for cross-border e-commerce.Temu and Shein are already adapting to stay competitive, as consumers and brands assess the impact on their shopping carts, delivery times, and promotions.