President Trump has closed essential trade loopholes affecting e-commerce. By ending the ‘de minimis’ exemption, packages valued under $800 will now incur tariffs.

The de minimis exemption has allowed companies like Temu and Shein to thrive by sending low-cost goods to U.S. consumers tariff-free.

With new executive orders, packages below $800 will incur substantial tariffs.

The tariff increases are very likely to raise product prices for Temu and Shein. This could lead to reduced sales as consumers might turn to cheaper alternatives, impacting how these retailers operate in the U.S. market.

Higher prices may lead consumers to seek products from domestic brands. As shopping habits evolve, there are signs that previously popular retailers may see a decline in their market share.

Supporters of the tariffs believe they create a fairer landscape for U.S. businesses, while critics warn that these measures will burden American consumers and disrupt trade. Ongoing debates reflect deep divisions over U.S. trade policy.

The shift in trade policies may force companies like Temu and Shein to rethink their sourcing and supply chains. This could lead to investment in domestic markets but may also result in increased prices and altered consumer shopping behavior.