The end of the de minimis rule — which previously allowed goods under $800 to enter the U.S. duty-free — has sent shockwaves through global e-commerce, prompting retailers to halt U.S. sales and scramble for solutions.
Effective Friday, May 2, 2025, all small parcels from China and Hong Kong are subject to 145% tariffs, in line with President Donald Trump’s sweeping trade policies. The move, intended to curb Chinese imports, has left businesses reeling, with some abandoning the U.S. market altogether.
Global retailers hit pause
British beauty retailer Space NK suspended all U.S. online orders, citing uncertainty around “incorrect or additional costs” for customers. Likewise, Canadian lingerie brand Understance announced it would no longer ship to the U.S., calling the shift from 0% to 145% “untenable.”
Meanwhile, Hong Kong Post halted certain U.S.-bound shipments as early as April 27, further highlighting how the decision is disrupting global logistics chains.
“I’ve seen a lot of small to medium-sized businesses just choose to exit the market altogether,” said Cindy Allen, CEO of global trade consultancy Trade Force Multiplier. She warned the tariff change could result in a mass exodus of non-U.S. sellers, as many simply can’t absorb or pass on the costs.
USPS and price hikes
The U.S. Postal Service (USPS) has implemented its own structure: tariffs of 120% per package or $100, whichever is higher — rising to $200 in June. Retailers trying to stay in the game are raising prices to offset the impact.
British fashion label Oh Polly raised U.S. prices by 20% and may increase them again. Singapore’s Shein, whose operations rely heavily on Chinese manufacturing, reassured customers on Instagram that prices would stay affordable, although “some products may be priced differently.”
Temu, the global marketplace operated by China’s PDD Holdings, responded swiftly by pushing U.S.-stocked inventory labeled “Local” — to reassure customers they can still buy tariff-free.
Implications for U.S. consumers
For American shoppers, this change could raise prices dramatically on everything from beauty and fashion to tech accessories, especially from popular platforms like Shein, Temu, and AliExpress. The shift also reduces consumer choiceas foreign retailers pull back.
The de minimis rule, a cornerstone of low-cost cross-border online shopping, had helped fuel the explosive growth of direct-to-consumer brands outside the U.S. With it gone, higher costs and slower shipping times are almost certain to follow.
