Why your favorite online deals might start getting more expensive

Millions of Americans have grown used to scoring super cheap deals with free shipping from overseas sellers. Now with a tax exemption closing in the coming weeks, those bargains could get pricier and slower to arrive.

Shoppers might see higher costs, fewer options and longer wait times as companies scramble to adjust, and the way we buy online could look very different going forward. So how will the de minimis exemption affect retailers and buyers?

The duty-free deal? It’s coming to an end

The de minimis tax exemption is a bipartisan rule that allows packages under $800 per person, per day to enter the U.S. without paying duties or taxes. But under a new executive order signed by President Donald Trump, that loophole is closing. Starting Friday, Aug. 29, all shipments, regardless of value, will be subject to full import duties.

Supporters of the de minimis exemption, including the National Foreign Trade Council, argue that it helps keep prices down and goods moving, a practice Americans became accustomed to during the pandemic. With inflation still lingering and supply chains recovering, small businesses, in particular, can’t afford higher costs or more red tape.

They also say that scrapping the rule could stretch border resources even thinner. Customs agents might be pulled from high-priority areas, like drug enforcement at the southern border, to screen low-value packages instead.

How shoppers could feel the change

A study from Yale, UCLA and the National Bureau of Economic Research breaks down who really benefits from duty-free imports, and who could be left paying more if the rules change.

While Chinese and international retailers like Shein, Temu and AliExpress benefit from the de minimis exemption, the 2024 study found the biggest winners are lower-income households, who import more duty-free goods, especially from China, than higher-income shoppers. Zip codes with lower median incomes and fewer white residents were far more likely to rely on de minimis shipments.

Now that the Trump administration is rolling back the exemption for many products, the impact could be steep. The study estimates that cutting the rule could cost U.S. consumers between $11 billion and $13 billion a year, with lower-income and minority communities hit the hardest.

Beyond Shein and Temu: Who else could be hit

The de minimis crackdown is not just a problem for fast fashion giants. Budget-friendly e-commerce platforms like AliExpress, Romwe, Newegg and even ASOS could also see disruption if they rely on low-value direct shipments from Asia. Not to mention, with tariffs in full effect, many retailers are adapting to their new normal.

ASOS has said it remains confident in its U.S. expansion despite the new tariffs, according to reporting from Drapers.

Unlike Shein or Temu, which are already investing in U.S. warehouses to avoid added costs, smaller and lesser-known retailers may find it harder to adapt.

Platforms like eBay and Etsy pushed back when the government asked for public input on ending the de minimis exemption in March, according to Reuters. Etsy told customs officials that the rule helps small sellers stay in business by making it easier and more affordable to trade across borders. Many U.S. sellers rely on it to import materials or ship finished products to customers overseas, supporting both their livelihoods and their families.

Prices for Nvidia graphics cards just jumped on Newegg, and the company says Trump’s new tariffs are the reason. Shoppers spotted sudden increases on models like the RTX 5090 and 5080, with some cards going up by as much as $400. When asked about it online, Newegg confirmed the cards come from China and pointed to the new 10% import tax.

What to watch for when shopping

If you’re shopping online, it’s worth taking a closer look at where your order’s coming from. Items stocked in U.S. warehouses may still ship quickly and could avoid some of the new fees.

Expect fewer super-low prices and lightning deals, especially on sites known for cheap imports. Shipping costs might also start to creep up, even from retailers that used to offer free delivery. Keep an eye on your cart total and look for U.S.-based sellers when you can.

Will ending the exemption increase consumer safety?

The Consumer Federation of America warns that the explosion in de minimis shipments, from 153 million in 2015 to over 1 billion in 2023, has overwhelmed agencies like Customs and Border Protection and the Consumer Product Safety Commission. The result? Dangerous and counterfeit products are slipping through into American homes.

While the new tariffs target some shipments from China, CFA says most of these low-value packages come in through air cargo or express carriers, not regular mail, and those aren’t affected by the new screening rules.

Their bottom line: Tariffs alone won’t fix this. CFA is urging Congress to tighten safety rules for online marketplaces and require platforms to vet sellers more thoroughly, especially for high-risk products like toys, batteries and anything that can catch fire.