The United States officially ended the de minimis exemption for goods imported from China and Hong Kong. This rule had allowed imports valued under $800 to enter the U.S. duty-free. The change marks the end of a trade policy that kept prices low for online shoppers. Experts warn that consumers could feel the impact almost immediately.
The de minimis exemption, which means “too minor to merit consideration,” simplified customs processing for low-value goods. Initially, this policy aimed to ease the burden of imports on both businesses and consumers. However, critics argue that it allowed foreign companies to bypass U.S. tariffs. As a result, companies like Shein and Temu could offer deep discounts without paying additional taxes, undercutting U.S. retailers.
Now that the de minimis exemption has ended, the U.S. will tax these goods, raising their prices. Many small businesses already feel the strain. Judy Recknagel, the owner of The Mermaid’s Tale in Amherst, shared her concern. “One vendor is going out of business, and another is raising prices by 10%. Anything ordered from January through March will cost 18% more starting in April,” she said.
Recknagel plans to absorb the extra costs as much as possible. However, many small businesses face tighter margins and may be forced to pass the higher prices onto their customers. On the other hand, larger retailers can shift supply chains or negotiate better shipping deals to manage the changes.
Michael Goldberg, a professor at Case Western Reserve University, explained that consumers might see price increases for the first time due to the shift in policy. This adjustment follows a broader effort by U.S. officials to combat what they see as unfair trade practices, including concerns over counterfeit goods and security risks linked to foreign shipments.
The U.S. tariff changes are part of an ongoing strategy to address these issues, and they may continue to affect how businesses and consumers interact with international markets.
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