Business
Tariffs:Here’s what “Buyer beware: End of de minimis exemption means higher prices for overseas goods, experts say” is all about
Table of Contents:
What’s Happening?
As of August 29, 2025, the U.S. has officially ended the longstanding de minimis exemption tariffs—which previously allowed low-value imports (under $800) to enter the U.S. duty-free. This marks a sweeping expansion of a policy change that initially affected only shipments from China and Hong Kong earlier this year.
Why It’s a Big Deal
Raised Costs for Consumers:Tariffs
Most imported goods under $800—like apparel, beauty items, electronics, supplements—now face a tariff ranging from 10% to 50%, depending on the origin or item type. Alternatively, a temporary flat fee of $80 to $200 per package applies when shipped via foreign postal systems. Hospitality products like Korean beauty items have already seen price jumps of about 15%. For instance, a $30 pair of slippers could now cost $44.37—over 50% more after tariffs and fees.
Shipping Delays & Disruptions
Customs procedures are now mandatory for all low-value goods, potentially leading to longer delivery times and logistical delays. Numerous national postal services—across Europe, Asia, and Latin America—have paused or limited shipments due to uncertainty over new documentation and payment systems. Some forecasts anticipate delivery delays of up to 20 days instead of the usual 5–10.
Impact on Small Businesses
Platforms like Etsy, eBay, and other e-commerce sites heavily relying on affordable, low-value shipping are hit particularly hard. These sellers now face increased costs and administrative burdens—and many will likely pass these onto consumers. Meanwhile, larger retailers like Shein and Temu may fare better by using U.S.-based warehouses or absorbing some of the costs.
Why the Move?
The administration cites several reasons:
- Public safety: To curb illicit trade—including fentanyl and counterfeit goods—through low-value, uninspected shipments.
- Fair competition: To level the playing field with U.S. retailers who couldn’t match the low prices enabled by the exemption.
- Revenue generation: Expected to raise up to $10 billion annually in customs revenue.
What You Should Know as a Shopper:Tariffs
| Tip | Why It Matters |
|---|---|
| Check for tariff surcharges at checkout | Sellers may pass on duties, so compare total cost. |
| Know the country of origin | Tariffs vary significantly by origin—around $80 from low-tariff countries, up to $200 from high-tariff ones. |
| Watch for shipping delays | Allow for extra transit time—international shipments may now take much longer. |
| Consider alternatives | Explore U.S.-based retailers or stock up early to avoid late holiday delays. |
Bottom Line:Tariffs
The end of the de minimis exemption is a major shift in U.S. import policy. It signals higher prices, slower shipments, and a longer paperwork trail for both consumers and small businesses. While the move aims to protect American interests and generate revenue, the barring of low-value imports challenges the convenience and cost-effectiveness of global online shopping.