Act fast: How tariff changes could affect your online shopping and the loophole to save money!
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If you're someone who loves finding great deals online, then you're in for a big surprise—some major changes are coming that could impact your shopping habits.
For years, platforms like Shein and Temu have been favorites for those seeking affordable fashion and trendy finds, but this shopping paradise is about to experience a shift.
As new tariff regulations loom, the prices of your favorite items might go up, but don’t worry—there’s a way to navigate these changes and still score a deal.
Here's everything you need to know to take advantage before it's too late.
Shein and Temu have become synonymous with affordable fashion, home goods, and accessories.
With an extensive selection of products at prices that seem almost too good to be true, it's no wonder these platforms have captured the attention of budget-conscious shoppers across the country.
As of 2023, Shein and Temu together controlled 17% of the US discount market, contributing significantly to the boom in Chinese exports of low-value goods.
But now, the tides are changing, and it’s important to stay ahead of what’s coming.
The looming tariff changes and their impact
Changes are coming fast, and they might leave you scrambling to adjust your shopping habits.
The Trump administration had previously imposed a hefty 125% tariff on Chinese imports, with other countries enjoying a temporary reprieve.
Now, China is preparing to tax US products at 84%, creating ripple effects that could send prices soaring and impact stock markets.
For US consumers, this means those ultra-cheap orders from Shein and Temu may no longer be as affordable.
As a result, American imports from China will see a significant price jump.
Also read: A major clothing brand is making headlines—what’s really going on?
Understanding "De Minimis" and its role in your shopping cart
The de minimis exemption, part of the Tariff Act of 1930, allows low-value goods to enter the US without paying duties or fees when it costs more to collect them than the revenue generated.
Originally introduced in 1938 for goods valued at $1 or less, the exemption limit has since increased to $8 in 1978, $200 in 1993, and $800 in 2015.
Today, over half of the packages benefiting from this exemption come from China, with Shein and Temu accounting for over 30% of daily shipments, according to Reuters.
However, this loophole is closing soon. The de minimis exemption for products from China will end on May 1.
After that, postal packages valued under $800 will be taxed at 90% of their value or $75 per item, with the rate increasing to $150 per item after June 1, according to the White House.
They have yet to comment on whether the upcoming tariff hike will impact de minimis rates.
While tariffs on Chinese exports have been rising under Trump’s "Liberation Day" push, packages under $800 remained duty-free due to the de minimis exemption.
Trump initially closed this loophole early in his administration but reopened it in February due to issues with the collection system.
On April 2, he announced that the proper protocols were now in place to collect revenue on small-value international packages.
Also read: Slash your grocery bill now: 5 smart swaps to outsmart rising tariff costs!
What this means for your future orders
As the de minimis loophole closes, expect higher prices and potential delays in shipping.
Platforms like Shein and Temu will have to adapt, and there could be longer wait times for those irresistible deals.
However, the good news is that both platforms are already taking steps to minimize the impact.
By diversifying their supply chains and setting up warehouses in the US, they hope to keep prices competitive, despite the new tariffs.
US Customs and Border Protection (CBP) and carriers like FedEx are also gearing up for these new tariff regulations.
With these changes coming into play, FedEx is ensuring that customers are informed and the transition is as smooth as possible.
A FedEx spokesperson told AP that the company will help customers adjust to the new rules and ensure shipments run smoothly by having “paperwork completed correctly ahead of pick-up.”
With the upcoming tariff changes, prices may rise, so it’s worth thinking about getting your favorite items sooner rather than later.
As these changes take effect, shoppers and sellers alike will need to adjust. Whether you're stocking up now or waiting to see how things unfold, staying informed is key.
Read next: Discover 7 groceries immune to tariffs: How to outsmart rising prices at the store
We’d love to hear from you—share your thoughts and experiences in the comments below. Have you already noticed price changes, or do you have any money-saving strategies for shopping on your favorite sites?
For years, platforms like Shein and Temu have been favorites for those seeking affordable fashion and trendy finds, but this shopping paradise is about to experience a shift.
As new tariff regulations loom, the prices of your favorite items might go up, but don’t worry—there’s a way to navigate these changes and still score a deal.
Here's everything you need to know to take advantage before it's too late.
Shein and Temu are navigating the upcoming changes in US trade policies, adapting their strategies to keep prices competitive for customers. Image Source: Pexels / Markus Winkler.
Shein and Temu have become synonymous with affordable fashion, home goods, and accessories.
With an extensive selection of products at prices that seem almost too good to be true, it's no wonder these platforms have captured the attention of budget-conscious shoppers across the country.
As of 2023, Shein and Temu together controlled 17% of the US discount market, contributing significantly to the boom in Chinese exports of low-value goods.
But now, the tides are changing, and it’s important to stay ahead of what’s coming.
The looming tariff changes and their impact
Changes are coming fast, and they might leave you scrambling to adjust your shopping habits.
The Trump administration had previously imposed a hefty 125% tariff on Chinese imports, with other countries enjoying a temporary reprieve.
Now, China is preparing to tax US products at 84%, creating ripple effects that could send prices soaring and impact stock markets.
For US consumers, this means those ultra-cheap orders from Shein and Temu may no longer be as affordable.
As a result, American imports from China will see a significant price jump.
Also read: A major clothing brand is making headlines—what’s really going on?
Understanding "De Minimis" and its role in your shopping cart
The de minimis exemption, part of the Tariff Act of 1930, allows low-value goods to enter the US without paying duties or fees when it costs more to collect them than the revenue generated.
Originally introduced in 1938 for goods valued at $1 or less, the exemption limit has since increased to $8 in 1978, $200 in 1993, and $800 in 2015.
Today, over half of the packages benefiting from this exemption come from China, with Shein and Temu accounting for over 30% of daily shipments, according to Reuters.
However, this loophole is closing soon. The de minimis exemption for products from China will end on May 1.
After that, postal packages valued under $800 will be taxed at 90% of their value or $75 per item, with the rate increasing to $150 per item after June 1, according to the White House.
They have yet to comment on whether the upcoming tariff hike will impact de minimis rates.
While tariffs on Chinese exports have been rising under Trump’s "Liberation Day" push, packages under $800 remained duty-free due to the de minimis exemption.
Trump initially closed this loophole early in his administration but reopened it in February due to issues with the collection system.
On April 2, he announced that the proper protocols were now in place to collect revenue on small-value international packages.
Also read: Slash your grocery bill now: 5 smart swaps to outsmart rising tariff costs!
What this means for your future orders
As the de minimis loophole closes, expect higher prices and potential delays in shipping.
Platforms like Shein and Temu will have to adapt, and there could be longer wait times for those irresistible deals.
However, the good news is that both platforms are already taking steps to minimize the impact.
By diversifying their supply chains and setting up warehouses in the US, they hope to keep prices competitive, despite the new tariffs.
US Customs and Border Protection (CBP) and carriers like FedEx are also gearing up for these new tariff regulations.
With these changes coming into play, FedEx is ensuring that customers are informed and the transition is as smooth as possible.
A FedEx spokesperson told AP that the company will help customers adjust to the new rules and ensure shipments run smoothly by having “paperwork completed correctly ahead of pick-up.”
With the upcoming tariff changes, prices may rise, so it’s worth thinking about getting your favorite items sooner rather than later.
As these changes take effect, shoppers and sellers alike will need to adjust. Whether you're stocking up now or waiting to see how things unfold, staying informed is key.
Read next: Discover 7 groceries immune to tariffs: How to outsmart rising prices at the store
We’d love to hear from you—share your thoughts and experiences in the comments below. Have you already noticed price changes, or do you have any money-saving strategies for shopping on your favorite sites?
