Context:

Deborah Grushkin, an online shopper from New Jersey, panicked after hearing about the end of the 'de minimis' rule, allowing packages under $800 from China to enter the US without import taxes, a change initiated by President Trump that includes additional tariffs. This decision has sparked concerns among consumers and businesses, as the exemption facilitated lower prices and broader options, but now threatens to increase costs and reduce availability. Shoppers like Krystal DuFrene and Gee Davis express frustration over the potential economic burden, particularly on lower-income households, as prices for goods like fishing nets and small household items rise. Economists predict the end of 'de minimis' will disproportionately affect lower-income and minority families, leading to significant new costs, while businesses like Shein and Temu adjust operations to maintain affordability for consumers. Despite the policy's intention to curb abuses and promote safety, there is skepticism about its implementation and impact, with fears that smaller businesses reliant on imports will struggle to survive amidst these rapid changes.

Dive Deeper:

• Deborah Grushkin, an avid online shopper, hurriedly spent $400 on purchases from Shein, fearing it might be her last affordable shopping spree due to changes in import tax policies initiated by President Trump.

• The 'de minimis' rule, which previously allowed low-value packages from China to enter the US without tariffs, has been ended, and this move is expected to lead to price increases and potential shortages for consumers.

• Economists estimate the policy change will lead to at least $10.9 billion in new costs, with lower-income and minority households bearing the brunt, raising concerns about economic inequality.

• Consumers like Krystal DuFrene and Gee Davis express concern that the new rules are a financial burden, with product prices rising significantly, which they argue benefits large retailers at the expense of affordability for average consumers.

• Temu and Shein are restructuring their operations to adapt to the policy changes, including expanding US-based seller networks and warehouses to try and maintain competitive pricing.

• There is skepticism about the enforcement and practicality of the policy, with critics like Lori Wallach concerned that customs procedures might not effectively manage the influx of packages, potentially undermining the policy's intent.

• Businesses reliant on the 'de minimis' exemption, particularly smaller brands manufacturing abroad, are worried about their survival, with some considering price hikes and job cuts due to the rapid implementation of these changes.