Recent actions by President Trump to impose tariffs on goods from China, Mexico, and Canada also end the de minimis exemption that has allowed low-cost retailers like Temu and Shein to ship items under $800 to the U.S. without duties. This move could raise prices for consumers while benefitting companies such as Amazon and Etsy. The de minimis provision, in place since the 1930s, has seen substantial growth in e-commerce, leading to over 1.3 billion duty-free shipments worth over $48 billion processed in 2024.
The drastic increase in de minimis shipments has made it increasingly difficult to target and block illegal or unsafe shipments coming into the U.S.
Trump's actions could help companies including Amazon, Etsy, and eBay because their platforms let third-party sellers connect to U.S. consumers directly.
The de minimis provision has existed since the 1930s, but its use has exploded in recent years with the rise of e-commerce.
Bloomberg reports that Temu and Shein have been anticipating the news for a year and have been expanding their shipping networks stateside.
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