If you’re hooked on Temu or have a closet full of Shein outfits, brace yourself — the era of ultra-cheap imports may be over. Thanks to new trade policies from former President Donald Trump, Temu and Shein prices could rise by up to 30% as major tariff changes take effect.
The culprit? The closure of a long-standing trade loophole called “de minimis.” This rule, which allowed imports under $800 to enter the U.S. duty-free, has now been repealed under Trump’s renewed tariff push.
What Was the De Minimis Rule?
The de minimis rule, originally passed by Congress decades ago, exempted low-value imports from import taxes. That meant if you ordered a pair of jeans or makeup from China under $800, you skipped the import duty entirely. Sweet deal, right?
This rule fueled the rise of Temu and Shein, which rely heavily on direct-to-consumer shipping from China. But with the loophole gone, shoppers may soon feel the impact in their wallets.
Tariffs in Action: What’s Changing?
According to House Republicans, nearly half of all de minimis shipments to the U.S. come from China, with a third from Temu and Shein alone. Now, those shipments will face new duties:
- 30% of the item’s value
- Or a flat $25 fee, rising to $50 per item after June 1, 2025
Trump had initially scrapped the exemption in February, but logistical issues overwhelmed Customs and Border Protection, leading to a brief reinstatement. With new systems in place, the White House has now greenlit the full enforcement of tariffs on all low-value imports.
Billions in Avoided Duties, Now Reclaimed
Estimates from the Peterson Institute for International Economics suggest Temu, Shein, and similar platforms have avoided billions in tariffs under the de minimis rule. Between 2015 and 2024, low-cost item imports soared from $139 million to $1.36 billion annually, totaling $66 billion in untaxed goods.
Now, with tariffs reinstated, the U.S. aims to claw back lost revenue, and protect domestic retailers struggling to compete with ultra-low-priced Chinese imports.
Amazon and Haul May Also Be Affected
It’s not just Temu and Shein in the crosshairs. Amazon’s Haul platform, which sells low-cost goods sourced from China, could also be impacted. As the tariff net widens, any e-commerce player relying on direct international shipments may need to rethink their pricing models.
Final Thoughts: Is the Cheap App Era Over?
The Trump tariffs on Temu and Shein mark a turning point in how America deals with low-cost Chinese imports. While the new fees aim to support U.S. businesses, shoppers who built habits around budget shopping apps might have to start cutting back—or pay more.
The big question now: Will you keep Temu and Shein on your phone? Or is it time to search for new deals, closer to home?
