Sat, 10 May 2025

Sat, 10 May 2025 'I freaked out and spent $400 online – it felt like a last hurrah'

How consumers are reacting to shipping changes that mean low-value packages entering the US no longer avoid tariffs.
The change was intended to curb the abuse of the system, which allowed billions of dollars' worth of goods to slip into the country duty-free every year. However, critics say the new policy will lead to price hikes and shortages for consumers. Businesses are warning that the move could spark failures of smaller firms, while shoppers like Deborah Grushkin from New Jersey are bracing for higher prices. She recently ordered $400 worth of goods from China-based online retailer Shein, including stickers, T-shirts, and liquid eyeliner. The end of de minimis has been met with resistance from some companies, which say it will lead to job losses and price increases. However, others argue that the change is necessary to protect American businesses and consumers. The US government says the new policy will streamline trade and make it easier for authorities to inspect packages. But critics claim that the administration's decision will ultimately hurt ordinary people who rely on cheap imports from China. Estimates suggest that ending de minimis could lead to at least $10.9bn in new costs, which would disproportionately affect lower-income households. Some businesses are already warning of price hikes and job losses due to the change. The US has followed a similar path taken by countries like the UK, who are also considering measures to restrict low-value imports from China. However, it is not clear how successful these policies will be in their aim to protect domestic industries and consumers. US-based e-commerce brands that rely on the de minimis rule have warned of potential failures among smaller firms due to the changes. Some online retailers, including Shein and Temu, are taking steps to adapt to the new policy by expanding their networks of US-based sellers and warehouses. Customs officials deny claims that the end of de minimis will undermine enforcement and inspection processes. However, some analysts fear that the administration's decision could lead to difficulties in collecting tariffs and inspecting packages. The shift has sparked concerns about the economic impact on ordinary people who rely on cheap imports from China. Many businesses have expressed fears that they may not survive due to the sudden changes brought about by Trump's policy. Some companies, including Indochino and CUTS, have written letters to the government warning of significant threats to their viability. The US Customs notice has been criticized for potentially allowing products affected by new tariffs to enter through informal entry, which would ease some regulatory requirements. This move is seen as undermining enforcement efforts, making it difficult to collect tariffs or inspect packages. Business groups are advising companies to adapt quickly to the new policy and consider expanding their networks of US-based sellers and warehouses. Some analysts believe that the speed at which the change has been implemented has left businesses struggling to adjust.
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