US Ends Tariff Loophole, Raises Prices on Chinese Goods

The United States has officially ended the de minimis exemption, which previously allowed imports from China and Hong Kong valued under $800 to enter the country duty-free. This change is expected to raise prices for American consumers shopping online, especially from retailers like Shein and Temu, which had relied on the exemption to keep costs low. Small businesses are already reporting price hikes from vendors, and some foreign sellers are exiting the market or increasing prices to offset the new tariffs. The move is part of a broader U.S. effort to address what officials call unfair trade practices and concerns over counterfeit goods and security risks. While the Trump administration argues the policy will boost domestic manufacturing and protect small businesses, experts caution that the benefits may take years to materialize and that higher prices could be felt immediately. Some online platforms are now displaying import charges, and American companies are encouraging consumers to buy domestic products instead.