Shein, Temu, and Amazon Haul orders set to get pricier as U.S. closes import tax loophole

U.S. shoppers looking for cheap finds on Shein, Temu, and Amazon Haul will will face steeper prices starting today, as the Trump administration officially ends a long-standing import tax loophole that saved companies billions of dollars.

The government will shut down the de minimis exemption, which has allowed businesses to skip import duties on packages valued under $800. The loophole, dating back to the 1930s, has fueled the rise of ultra-low-cost online shopping, especially from China.

In 2022 alone, 83% of all e-commerce imports used the loophole, according to U.S. government data.

This is going to be really painful for retailers that rely heavily on manufacturing or shipping directly from China, said Jess Meher, a senior vice president at returns-management company Loop, in a Washington Post report.

Besides adding to the cost, the change is likely to result in lengthy delays, as inspectors struggle to handle a massive increase in small packages.

Whats changingand why

Under Trumps executive order, imports from China that once qualified for duty-free entry now face a 145% tariff if shipped commercially. Packages arriving through the Postal Service will incur a fee of $100 per packagerising to $200 next monthor 120% of the items value.

The crackdown is part of Trumps broader tariff campaign, designed to strengthen U.S. manufacturing. Trump has also imposed sweeping new tariffs on imports from other countries but paused or softened most of those for 90 daysleaving China as the primary target.

Impact on shoppers

Retail experts warn that shoppers could see price hikes of up to 30% on Shein and Temu orders, potentially costing U.S. consumers an estimated $22 billion annually. Temu and Shein alone account for nearly 30% of packages shipped into the U.S. each day, according to a report by the Peterson Institute for International Economics.

In response, Temu has shifted to a local fulfillment model, with many items now labeled local to indicate theyre already in U.S. warehouses. Shein announced price adjustments starting April 25, while Amazons Haul platform is also affected but has backed away from plans to visibly add import charges at checkout.

Though trade experts note that the de minimis shipments make up a small slice of total U.S. imports, theyve been critical for small businesses and bargain-hunting consumers. Critics of the loophole say it has enabled a flood of cheap imports and even illicit goods, while supporters argue it has kept costs down for millions of shoppers.

With the loophole closing, e-commerce players and their customers are bracing for higher costsand possibly fewer ultra-cheap hauls in their shopping carts.