Cheap parcels from China will no longer be duty-free. What does this mean for buyers and vendors here. world News

New York: Consumers can expect a delay in high prices and distribution when the Trump administration ends a duty-free exemption on import of low prices from China on Friday.
The end of the so -called de minimis rule that has allowed 4 million low -price parcels to enter the US every day – mostly from China – also forcing businesses who have manufactured their models on sourcing production in China to re -create their practices to reduce their costs.
But some can actually benefit from the expiration of duty exemption. For example, companies making their goods in the US may feel relieved of the competition of cheap Chinese imports, and possibly experience a bright sales approach.
This step, which applies to goods arising from the mainland China and Hong Kong, comes to the top of President Donald Trump’s new Tariff Total 145%on China. Beijing has retaliated with a tariff of 125% in the US, which increases a trade war between the world’s two largest economies. The sellers are already looking at cautious consumers.
On Wednesday, Trump said the de minimis exemption “a major scam against our country, actually against small businesses.”
“We finish it,” he said.
What is the Day Minimis provision? In 1938, the de minimis exception aims to facilitate the flow of small packages with price, not more than $ 5, which is equal to about $ 109 today. In 2016, the threshold increased to $ 800. But the rapid growth of cross-border e-commerce operated by China has challenged the intentions of the decades-old customs exception rules.
According to a February 1 report of the Congress’s research service, Chinese exports of packages worth less than $ 5.3 billion increased to $ 66 billion in 2018. And the American market has been a major destination.
Former President Joe Biden proposed a rule last year stating that foreign companies could not only avoid tariffs by shipping the goods that they claim to be $ 800 or less. Trump tried to end the exception in February, but his initial order was closed within the days when it appeared that the tariff was not prepared to process and assemble the tariff on the parcel’s holocaust in the US.
What is the effect on shopkeepers? Consumers will now face a more complex customs process to enter the US related to high prices and delivery delays that parcel declaration and duty payment.
Businesses can factor tariffs in the final value, or they can list them separately in the same way as sales tax. For example, Temu, which is owned by Chinese e-commerce company PDD holdings, is now listed “Import charges“It has allegedly doubled the prices of many items. (Retailer also has a” local warehouse “option for some products, which are sent from within the US and therefore avoid import duty.)
Meanwhile, Shin, now located in Singapore, is a checkout banner that reads, “Tariffs are involved in the price you paid. You will never have to pay extra in delivery.”
Amazon says that it is not planning to display additional tariff costs next to the product prices on its site – despite a report that e -commerce veterans were soon speculated, which will soon show new import duty, and the White House has condemned the alleged changes.
What about vendors and carriers? The parcel carrier will be burdened to collect duties, and paperwork for compliance with the new rule can be not only delayed and even disruptions in delivery, also said Ram Ben Tzian of Waiting Platform Publican.
Prominent commercial carriers like UPS and Fedex have stated that they are well equipped and are ready to gather duties on international parcel in compliance with local laws, including new American rules.
Commercial carriers will collect 145% tariffs on declared values. The US Postal Service, a government agency that provides international mail service, can choose to charge a flat fee of 120% tariff or a shipment per shipment on low-value packages, which is scheduled to increase to $ 200 on 1 June.
The US Customs and Border Protection states that it is “ready to fully implement the restrictions on day minimis shipment and collects all the revenue outstanding for these shipments on May 2, 2025.”
However, experts have expressed concern that an increase in workload can be a serious challenge.
In January and February, according to CBP, more than 70% of the 216 million packages coming in the US were originating from China.
What is the effect on businesses? Those who trusted the de minimis exemption are now to adjust.
John Curry, the owner and CEO of Arizona-based swimwear business Hapari International, switched to day minimis shipping from bulk shipping about six months ago to improve cash flow, speed up and eliminate US-based warehousing. His company makes its products in China and sells them directly to American customers through its online storefront.
Curry said that he planned to stay in the syllabus and pay an additional 145% duty – a parcel at a time – while waiting for the US and China to work as a more sustainable approach.
“There should be a solution because both countries cannot survive like this,” said Curry.
IZZY RONZWEIG, Founder and CEO CEO Logistics company Businesses such as Portless, Hapari helps to send goods from their China-based warehouse using day minimis discounts. He says that American businesses are now likely to live in China in China given the manufacturing base in China and the competition of supply chain in China, but may be expected to increase prices.
He said that good profit margin businesses would probably continue to ship from China, which run on the reservant profit margin, they are likely to “go local”, which install more US-based warehouses to reduce tariff costs, they said.
Who benefits? Trade groups representing flag makers and bike dealers said they expect benefits from the end of duty exemption.
For example, in written comments written on the US Trade Representative portal, the US Flag Manufacturer Association said that its members have been bombing by an attack of US flag imports that are mostly created in China that are incorrectly marketed and significant discounts. The group cited the US-made American flag sales of 25% to 35% last year.
Embroidery solution manufacturing LLC CEO Larry Severe, which makes Star Fields for American flag manufacturers, had to shutter one of its two plants in South Carolina earlier this year because of strict competition from cheap imports. He said that sales have fallen by 20% since 2021 due to DI Minimis exemption.
“We need duties to level the playground to make it fair,” Sevarini said.
Heather Mason of the National Bike Dealers Association said that shopkeepers often check $ 2,000 bikes from a reliable brand like trek and then find a look online for $ 1,200 – often with low quality parts, no warranties, no service and safety risks.
“The iconic brands follow strict security, labor and warranty standards,” he said in an email to the Associated Press. “D Minimis allowed bad actors to dodge them.”