The Biden administration had previously considered limiting the de minimis rule, reflecting ongoing concerns about its impact on American businesses and customs enforcement.

While the elimination of the tariff exemption aims to address trade imbalances, the long-term effects on consumer prices and supply chains remain uncertain.

Concerns are rising that the current tariff program could contribute to a potential recession, leading to stagflation characterized by high prices and reduced consumer spending.

Geopolitical risk management is becoming increasingly crucial, as the declining app rankings of Shein and Temu highlight the impact of regulatory policies on their competitiveness.

Shippers are expressing concerns about potential bottlenecks at airports and whether airlines are prepared to handle new duty collection procedures.

Critics, including organizations like the Cato Institute, argue that eliminating the de minimis exemption could harm low-income American consumers by reducing competition and choices in the market.

On May 2, 2025, the United States ended a tariff exemption for goods shipped from China valued at less than $800, significantly impacting e-commerce platforms like Shein and Temu.

While Temu asserts that consumer prices will remain stable, experts caution that new import fees and taxes could result in price increases exceeding 100% of a product's value.

Organizations are advised to explore alternatives to direct China-to-U.S. fulfillment, such as regional distribution centers in Mexico, Canada, or the EU, to mitigate tariff exposure.

The policy aims to boost local manufacturing; however, small business owners fear it may primarily benefit larger firms, potentially leading to the closure of smaller enterprises.

This shift in trade policy is intended to create fair competition for American businesses, but it poses challenges for consumer access to affordable goods.

Temu's parent company, Pinduoduo, may consider withdrawing from the U.S. market if conditions become unfavorable, as it does not rely on U.S. operations for its long-term survival.