The recent decision by the United States government to repeal the tariff exemption for low-cost packages, known as ‘de minimis,’ has transformed the international trade landscape, achieving $1 billion in tariff revenue to date. This measure, first implemented in May of this year 2025 for shipments from China and Hong Kong (and later expanded), mainly affected to companies like Shein, Temu or Alibaba.
It’s aim is to curb the entry of products with ‘dangerously low’ prices that affect domestic industry. However, the adjustment has created an economic dilemma: while CBP seizures of unsafe goods have surged by 82%, millions of low-income households — which account for 48% of the demand for these products — now face higher costs. Amid the uncertainty, the Supreme Court will have to determine at the beginning of next year whether this presidential authority is constitutional, which could lead to massive refunds for consumers.
Goodbye to low-cost online shopping from outside the United States
Information published by CNN indicates that officials from the Customs and Border Protection (CBP) have reported the negative impact of this tariff measure on platforms like Temu, Shein, and Alibaba. This type of online cost-saving retail company took advantage of a tariff loophole on packages under $800, which were not taxed. However, since May of this year, with the implementation of Trump’s tariff policies, the volume of goods has dropped from an average of 4 million packages daily to just 1 million by the end of August.
According to the administration, this measure, which was taken unilaterally by the president, is a national security tool through which tax revenue has been increased, as well as preventing illicit substances from entering the country. According to a CBP report, “seizures of unsafe and non-compliant packages have increased by 82% and inside them were: counterfeits, narcotics, defective electronic products, and products containing hazardous chemicals”.
Tariffs on foreign shipments
Currently, these packages are subject to tariffs ranging from 10 to 50%, depending on the country of origin. In some cases, a fixed fee of between $80 and $200 is applied, which expires in February. Although the administration considers the revenue collected to be one of the positive aspects, the truth is that some goods are essential for various businesses, while many individual U.S. consumers are unaware that they will have to cover the cost of these tariffs in cases where the carrier does not include them in the product price.
Those most affected
According to a study conducted in February by the economics departments of UCLA and Yale, ‘de minimis’ packages are in high demand in the poorest U.S. ZIP codes (about 48%), while less than half of that figure (22%) was delivered in the wealthiest areas, making it clear who has suffered the greatest impact from this tariff measure.
Legal loophole
Despite the benefits outlined by the administration, the truth is that the measure might not be legal. It is currently in the hands of the Supreme Court of Justice, which has to determine in January 2026 whether the president has the constitutional authority to make this type of decisions or not. If the ruling is against it, American consumers who have paid tariffs on low-value packages could receive refunds.
Frequently asked questions
How has the new rule impacted purchase volumes?
Daily shipments dropped from 4 million to 1 million because products that were previously exempt now face tariffs ranging from 10% to 50%, or fixed fees of up to $200.
What benefits and problems has the measure caused?
$1 billion has been collected, and seizures of dangerous goods have increased by 82%, but it has made purchases more expensive for the poorest households, which account for 48% of the demand.
What will happen if the Supreme Court overturns the tariffs in 2026?
If the court rules against the presidential authority in January 2026, consumers who paid taxes on low-value packages could receive massive refunds.