News Page

Main Content

A massive tariff on millions of Americans’ purchases just went into effect — cue the chaos

CNN's profile
CNN
11h ago

The expiration of the de minimis exemption, which allowed duty-free entry of goods under $800 into the US, has resulted in significant tariffs on Chinese imports, potentially doubling the cost for American consumers. This policy change has particularly affected lower-income households, as a large proportion of e-commerce imports came from China to these areas. Major carriers and the government have stated their readiness to handle the increased burden of inspections and tariffs, but the real impact will be felt by consumers who relied on inexpensive goods from platforms like Shein and Temu. Retailers have already begun adjusting their prices in anticipation of these changes, raising concerns about further price hikes. Public opinion on President Trump's trade policies has been increasingly negative, with many Americans blaming them for worsening economic conditions and higher living costs.

A massive tariff on millions of Americans’ purchases just went into effect — cue the chaos

The de minimis exemption, which allowed goods valued under $800 to enter the US duty-free, ended, leading to tariffs as high as 145% on Chinese imports, significantly raising consumer costs.

This change has affected lower-income Americans the most, as nearly half of the de minimis packages were sent to the poorest zip codes, making cheap imports less accessible.

Major shipping companies like UPS, FedEx, DHL, and USPS have prepared for the increased workload of inspections and tariffs, indicating a rise in operational costs.

Retailers such as Shein and Temu have already increased prices in response to the looming end of the de minimis exemption, with further price hikes possible.

The public's perception of Trump's trade policies has shifted, with a majority of Americans feeling that these policies have worsened economic conditions and increased living costs.

The sheer volume of e-commerce affected is massive, with over 1.36 billion packages entering the US under the exemption in the last fiscal year, highlighting the widespread impact of the policy change.

Despite the logistical readiness claimed by carriers and the government, the end of the exemption may lead to significant disruption and higher costs for American consumers who frequently purchase from Chinese e-commerce sites.

Latest News

Around The Web