New Jersey has become a focal point for online shoppers grappling with significant changes in U.S. import policies. Deborah Grushkin, a spirited e-commerce enthusiast, expressed her distress over recent government actions that revoked a long-standing exemption allowing low-value packages from China to enter the country without incurring import taxes. This policy shift, which President Donald Trump endorsed earlier this year, is anticipated to disrupt consumer habits and raise prices amid growing concerns about fair competition for domestic retailers.
The elimination of the “de minimis” rule, which had exempted packages valued under $800 from duties and customs scrutiny, has already sent shockwaves through the e-commerce landscape. This measure, championed by traditional retailers and sought after due to an influx of low-cost goods from overseas, has led to warnings from U.S.-based online brands. Smaller businesses fear that these changes might lead to failure as shoppers brace for increased prices and potential shortages in popular merchandise.
With the looming deadline on May 2 to comply with the new directives, Grushkin hastily placed a $400 order from the online retailer Shein, acquiring items ranging from T-shirts to Mother’s Day gifts. “It felt like my last chance to stock up,” she said, reflecting the anxiety many consumers are experiencing. As the de minimis exemption gained popularity over the last decade, nearly 1.4 billion packages took advantage of it last year—an average of over three million per day.
Supporters of the exemption argue it simplified trade processes, making products more affordable and easily accessible. They contend that ending the rule may disproportionately burden low-income households, as the removal of such incentives could translate to an additional $10.9 billion in costs, according to some economic analyses. Critics, including political representatives from both sides of the aisle, have raised concerns about abuse of the policy to evade import regulations, particularly with illegal or counterfeit goods.
Krystal DuFrene, a retired resident of Mississippi, has also noted the rising costs resulting from the tariff changes. After canceling an order for curtains when prices surged, she noted, “I genuinely prefer ordering directly from online platforms to get low prices.” With changes to de minimis, platforms like Temu have shifted their business models, opting to fulfill orders through local sellers to mitigate costs.
For many shoppers, the alterations feel abrupt and unwarranted. Gee Davis, an author from Missouri, described the modification as a potential “money grab” by large retailers seeking to overtake the market, making products less attainable for average consumers. “It’s disheartening to think that even small purchases will be beyond reach for many,” she reflected.
The complexities surrounding the de minimis policy have raised questions about the government’s enforcement capabilities in light of the new tariffs. Experts like Lori Wallach from Rethink Trade expressed skepticism, arguing that while the reforms appear significant on paper, practical implementation may weaken their effectiveness.
Although U.S. Customs and Border Protection maintains that enhanced transparency requirements remain in place, businesses are taking the government’s actions seriously. Shein and Temu have both communicated to customers that price hikes are imminent, while the latter rapidly expands its U.S.-based seller network to offset potential impacts on pricing.
The ramifications of these changes are far-reaching. Companies like Indochino, which specializes in custom suits, have voiced concern over the viability of their business under the new tariffs. Similarly, executive Steven Borelli of CUTS, an athleisure brand, described the rapid shifts in policy as overwhelming, cautioning that without quick adjustments, many smaller brands could face extinction.
As the new trade landscape unfolds, shoppers and businesses alike are left navigating an uncertain future, where familiarity with online shopping may give way to new challenges in the pursuit of affordability and accessibility.