Why Shein and Temu packages could get more expensive, very soon

If you have ever bought something from Shein, Temu or Amazon Haul, chances are you have benefited from a little-known, but widely used, trade loophole: the de minimis exemption.

The exemption allows packages valued under $800 to enter the United States duty free, following the idea that the government shouldn’t spend more money trying to collect a tariff than would otherwise be collected.

The vast majority of packages entering the U.S. under this exemption come from China, and it has allowed huge growth among Chinese e-commerce companies that ship low cost goods directly to American consumers from China.

But, as part of an escalating trade war with China, President Trump signed an executive order ending the de minimis exemption starting May 2nd, specifically on packages from China and Hong Kong.

In response, Shein and Temu have already announced they will raise prices in the U.S. starting April 25.

PBS News spoke to Clark Packard, research fellow at the Cato Institute, to understand why President Trump ended the exemption for China and what this could mean for American consumers.

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