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No De Minimis Jolt Yet on Footwear, But Shein and Temu Could See Profound Impacts

Ending the $800 tariff exemption aims to prevent counterfeit imports and protect U.S. jobs; 1.4 billion shipments were previously exempt, CBP data shows.

  • The U.S. administration is ending the 'de minimis' import tax exemption on August 29, 2025, requiring import duties on most shipments valued below $800.
  • This policy change follows President Trump's executive order signed last month to end the decades-old rule dating to 1938, which allowed low-value packages to enter duty-free.
  • The exemption's end affects over 1.4 billion shipments worth $64.6 billion that arrived duty-free in 2024, with about 73% originating from China and involving retailers like Shein, Temu, Etsy, and eBay.
  • Stocks of major platforms fell sharply—Etsy shares dropped 14% over five sessions and eBay 6%—while experts noted consumers may face price increases ranging from 24% to 60% depending on product and origin.
  • The change may raise retail prices, disrupt logistics, and disproportionately impact lower-income consumers and small businesses, though economists expect only limited broader macroeconomic effects.
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CNBC broke the news in United States on Thursday, August 28, 2025.
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