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A massive tariff on millions of Americans’ purchases just went into effect — cue the chaos

  • A significant shipping exemption known as the de minimis rule ended just after midnight on May 2, 2025, impacting imports from China and Hong Kong entering the US.
  • The exemption ended due to concerns over its overuse and abuse, with both Trump and Biden administrations taking action against it since 2024.
  • The exemption previously allowed shipments valued under $800 to enter the US without duties, benefiting low-cost online retailers based in China such as Shein and Temu, which accounted for nearly 30% of these imports.
  • Tariffs as high as 145% now apply to these goods, with carriers like UPS, FedEx, and USPS prepared for enforcement and anticipated impacts include significant price hikes and longer deliveries.
  • The change mainly affects lower-income households, with nearly half of these packages shipped to poorer US zip codes, and may sharply increase costs for millions of consumers.
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Forbes broke the news in United States on Thursday, May 1, 2025.
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