U.S. Ends Duty-Free 'De Minimis' Policy for Chinese Imports, Shaking Up E-commerce Market
Apr/08/2025
The Trump administration’s move to eliminate the "de minimis" exemption, which allowed duty-free entry for shipments valued under $800 from China and Hong Kong, significantly alters the competitive landscape for major online retailers. Starting May 2, goods from these regions will face tariffs up to 30% or flat-rate fees, intended to curb illicit imports and level the playing field for American businesses. The decision heavily impacts Chinese fast-fashion retailer Shein, whose rapid growth has propelled it past traditional brands like Zara and H&M in online revenue; Shein’s e-commerce sales surged dramatically from just $1.4 billion in 2018 to a projected $48 billion by 2024. This development, illustrated clearly in recent e-commerce sales comparisons, reveals Shein’s sharp ascent and underscores how policy changes could reshape the market by increasing costs for retailers dependent on direct-to-consumer shipments from Asia. As regulators aim to close trade loopholes and enhance customs enforcement, companies like Shein face mounting pressure to adjust their supply chains and pricing strategies accordingly.
