U.S. shoppers may soon face higher prices and longer wait times for products from the Chinese mainland and Hong Kong as lawmakers consider changes to duty-free import policies. The proposed legislation aims to eliminate the de minimis exemption that allows goods valued at $800 or less to enter the United States without incurring duties or taxes.
The move comes amid growing concerns over trade imbalances and national security. Companies like Shein and Temu, popular among young consumers for their affordable fashion and gadgets, could be particularly affected. With the potential policy change, imports from the Chinese mainland and Hong Kong would be subject to duties, increasing costs for both retailers and consumers.
“If the de minimis exemption is removed, we might see prices go up and delivery times lengthen,” said Amit Khandelwal, professor of global affairs and economics at Yale University. “This could impact lower-income households who rely on affordable goods.”
The de minimis rule has been in place since 1938 to simplify customs procedures, with the threshold raised to $800 in 2016. Since then, the volume of low-value shipments has surged, reaching over a billion items annually, according to U.S. Customs and Border Protection data.
For U.S. consumers like Sarah, a college student who frequently shops online for trendy clothes and electronics, the potential changes are concerning. “I love finding deals on apps like Shein and Temu. If prices go up or shipping takes longer, it might not be worth it anymore,” she said.
Experts warn that the proposed changes could have broader implications for the global supply chain. “Small and medium-sized businesses on both sides of the Pacific could feel the pinch,” said Matt Barr, vice president of e-commerce logistics company Radial. “The simplicity and affordability that consumers have come to expect may be coming to an end.”
While policymakers argue that the changes are necessary to protect domestic industries and address trade deficits, critics suggest that American consumers will bear the brunt of the impact. The debate continues as the legislation moves through Congress, leaving shoppers and retailers alike uncertain about the future.
