AMHERST, Ohio — A trade policy that has kept prices low for online shoppers is no more — and experts say the effects could hit your wallet almost immediately.
As of May 2, the United States has officially ended the de minimis exemption for goods imported from China and Hong Kong. That exemption, which allowed imports valued under $800 to enter the U.S. duty-free, had been a cornerstone of how low-cost retailers like Shein and Temu offered deep discounts without additional import taxes.
The term de minimis is Latin for "too minor to merit consideration," and the rule was initially designed to ease customs processing on low-value goods. But critics say it has allowed foreign companies to undercut U.S. retailers by sidestepping tariffs and shipping individual packages directly to American consumers.
Now, those packages will be taxed — and businesses say they’re already feeling the strain.
At The Mermaid's Tale in Amherst, owner Judy Recknagel says price hikes are starting to roll in.
“One vendor is going out of business. They’re just not going to try anything. They’re gone. Another vendor is upping our prices by 10%—anything ordered from January through March. 18 percent April on,” Recknagel said.
Recknagel says she’ll try to absorb the extra costs for as long as she can, but other small businesses may not have that option.
While large retailers may adjust by shifting supply chains or renegotiating bulk shipping arrangements, smaller stores face tighter margins — meaning higher prices could ultimately be passed along to customers.
“This may be some of the first time people are actually seeing real price increases due to a change in policy,” Michael Goldberg, a professor at Case Western Reserve University's Weatherhead School of Management, says.
The end of the exemption is part of a broader effort by U.S. officials to address what they call unfair trade practices and growing concerns over counterfeit goods and security risks associated with foreign direct-to-consumer shipments.
