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The Age of Cheap Online Shopping is Ending (theatlantic.com) 258

The century-old duty-free import exemption that transformed American online shopping has ended, The Atlantic argues, closing a loophole that allowed packages valued under $800 to enter the United States without tariffs. The de minimis threshold, raised from $200 in 2016, processed millions of daily shipments directly from overseas sellers to American consumers.

China lost access earlier this year; the exemption now terminates for all countries. Platforms including Shein, Temu, and marketplace sellers on Amazon, Etsy, and eBay built business models around direct shipping from manufacturing hubs in Asia and elsewhere. Import duties will apply to all international packages regardless of value, with tariffs reaching 50% for some countries. The policy shift affects everything from $30 specialty faucet parts shipped from Britain to handmade crafts from India, fundamentally altering the economics of cross-border e-commerce that emerged over the past decade.
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The Age of Cheap Online Shopping is Ending

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  • That's when the stocks companies built up in order to weather Trump's illegal trade war run out and they are going to have to start passing tariffs directly on to you.

    It's safe to say we are going to see an almost immediate jump in prices. They have been trying to raise prices consistently to sort of boil the frog a bit here and there but it's not enough.

    This is and always will be on national sales tax so that the wealthy can transfer their tax burden on to you personally.

    I think the older baby
  • It's ending... (Score:5, Insightful)

    by nospam007 ( 722110 ) * on Monday September 01, 2025 @01:26PM (#65630638)

    ...but only for Americans.

    • Re:It's ending... (Score:5, Informative)

      by Luckyo ( 1726890 ) on Monday September 01, 2025 @01:41PM (#65630680)

      EU is going in the exact same direction, for exact same reasons. Even methodology is mostly the same, such as cancelling de minimis loophole for imports (happened some time ago notably, before US), increasing import tariffs, changing postal payment rules, etc.

      • Re:It's ending... (Score:4, Interesting)

        by tlhIngan ( 30335 ) <slashdot@worfSLACKWARE.net minus distro> on Monday September 01, 2025 @03:52PM (#65630988)

        EU is going in the exact same direction, for exact same reasons. Even methodology is mostly the same, such as cancelling de minimis loophole for imports (happened some time ago notably, before US), increasing import tariffs, changing postal payment rules, etc.

        Most of those have always been in place for decades. The de minimis for most places is usually some trivial amount like $20 or so. This has been true for ages and the customs of the country expects it.

        The US was unique in that they don't have many of those taxes - the de minimis being $800 dates to 1934, when you could probably buy a complete *house* from Sears for that price. US customs never had to process much in the way because for the most part, most shipments fell below the value.

        What's doubly confusing is the way the taxes are being applied - you could declare the items contents and pay 36% of the value, or you could do the "flat rate". Additionally, the US is requiring all countries "pre pay" the tariffs - they have to be paid ahead of time.

        In other countries, what happens is the item arrives, and Customs then assesses the duties and taxes and bills the recipient for them. The US is insisting on the amounts to be pre-paid before it enters the US, which is causing huge confusion because of the added paperwork.

        Basically the US implemented a policy, the groundwork of which was not actually set up in time so now there's confusion on the whole thing.

        That's the problem. It can be done - prepaying taxes and duties is soemthing Canada has had when buying from the US from many retailers who set up their systems to be able to prepay them. But it took years for it to happen. These days so many sites support it - Amazon and their "import fees", eBay with its "International Shipping" and stuff all supporting prepayment of the taxes and duties. But go back 10 or 15 years and we dealt with having to pay at the door, having to stay home to wait for packages to arrive (because they won't deliver without payment), etc.

        The US is attempting to accomplish that in weeks what normally takes years. Fine if Trump 1.0 announced it, terrible because Trump gave basically no notice - he made noises, TACO, and the final policy wasn't written until literally the day before (well, a few weeks before, but big policy shifts take time).

        • by Luckyo ( 1726890 )

          You appear to be arguing against specifics of implementation, rather than the principle. I expressed no opinion on that.

        • The de minimis amount was changed over time. It originally was $5 in 1938. It was raised to $800 (from $200) in 2016. It was always intended to be consumer-level amounts, not something you could realistically run an import business with.
        • Additionally, the US is requiring all countries "pre pay" the tariffs - they have to be paid ahead of time. In other countries, what happens is the item arrives, and Customs then assesses the duties and taxes and bills the recipient for them. The US is insisting on the amounts to be pre-paid before it enters the US, which is causing huge confusion because of the added paperwork.

          This confuses me, tariffs aren't paid by countries, they are paid by the importer. How can the USA know a parcel is subject to tariffs before it has arrived? It's literally needs to land at the port first before it can be assessed. It's not like there are USA customs agents at ports all over the world checking to see if items have been approved before they get on the plane or a boat.

          I feel like this may be technicality where a port is technically not considered "in the USA". Otherwise I fail to understand h

        • by Zak3056 ( 69287 )

          the de minimis being $800 dates to 1934, when you could probably buy a complete *house* from Sears for that price.

          You're either mistaken or a fucking liar. The article summary at the top of this page even states it was raised from $200 in 2016.

          The de minimis exception was $1 in 1938. It was raised to $5 in the 1970s and $200 in the 1990s.

      • by quenda ( 644621 )

        EU is going in the exact same direction,

        How does it work there? Australia has changed the postage and tax rules, but I still can buy cheap stuff.
        Australia requires big marketplaces like Aliexpress and Ebay to collect 10% GST (sales tax) for sales to Australia.

        In the past, they could post small items from China, so I paid as little as $1 including delivery.
        Now they normally have to ship to Australia in bulk, and pay postage or courier here, so there is a minimum order for "free" delivery, but still only $15 (us$10) +10% tax for Aliexpress. An

    • by sinij ( 911942 )

      ...but only for Americans.

      What, no more cheap, disposable, and unreliable crap?! Stop the presses!

  • If only... (Score:2, Interesting)

    by dbialac ( 320955 )
    there was a place where they historically made this stuff that they could turn around and manufacture this stuff again. Now let's open the flood gates of people who think we can bomb adversaries with the solar panels our industrial sector now makes.
    • Re:If only... (Score:5, Insightful)

      by SoftwareArtist ( 1472499 ) on Monday September 01, 2025 @02:00PM (#65630754)

      If you're expecting this to lead to a surge of American manufacturing, don't. That would require long term investment, which requires being able to make long term plans. You can't do that when the rules change from one week to the next based on Trump's latest whim.

      So your international competitors have to pay a 50% tariff, giving you a big advantage. Time to start building a factory, right? Oops, he just dropped the tariff on that country to 10%. There goes your big advantage. Now he's raising the tariff on the country you get your raw materials from, making your whole business no longer viable. Now other countries are creating retaliatory tariffs on American goods, destroying your international business. Are you really sure you should be building that factory right now?

      When faced with uncertainty like this, businesses go into survival mode. They cut investment and try to conserve cash to get through whatever comes.

      A healthy economy requires stability and certainty. Businesses need to know what the rules are so they can make long term plans based on them.

      • Even if manufacturing in America shoots up you're not going to see any jobs come from it because new factories are built fully automated.
        • Even if manufacturing in America shoots up you're not going to see any jobs come from it because new factories are built fully automated.

          And it may take longer to stand up (some) factories than Trump has left in office.

          Regardless of who's next, many/most tariffs probably won't survive -- if any do, now that most of them have been declared illegal by a district and full appellate court -- and assuming SCOTUS doesn't just make things up to support Trump (as tariffs aren't even mentioned in the International Emergency Economic Powers Act (IEEPA) Trump used to impose them) ... Trump *could* get Congress to impose these, as the Constitution g

  • by ArchieBunker ( 132337 ) on Monday September 01, 2025 @01:35PM (#65630658)

    Don't know why this isn't on the front page of news sites but a good chunk of the world has suspended parcel shipments to the USA. https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fwww.newsweek.com%2Fmap-s... [newsweek.com]

    • To be clear the dementia here is not putting systems in place of how this will work post scrapping the de minimis exception. Removing the exception is a good thing. Most countries have already done so. The difference is when other countries did so the usually left well over a year for new procedures and policies to come in to play and when it was scrapped it had no impact on the post.

      But when your government is staffed by DUI hires and professional arsehole lickers that's what you get.

  • Keep in mind that my Ali Express packages came by the US Post Office. They have no capability to collect tariffs, so will no longer be doing international shipments.

    See:

    https://ancillary-proxy.atarimworker.io?url=https%3A%2F%2Fwww.varusteleka.com%2Fen... [varusteleka.com]

    Also, keep in mind that it isn't just the tariffs. The cost and contents of the package have to be declared. Someone has to do that paperwork. It won't be just the 15% tariff that you have to pay. There are other costs.

  • by EmagGeek ( 574360 ) on Monday September 01, 2025 @01:42PM (#65630682) Journal

    Stop calling things loopholes that aren't loopholes. The de minimis exception is explicit law, designed with the express purpose of protecting small retailers. Getting rid of de minimis only helps Amazon and Walmart and the Billionaire class, while hurting small retailers and the working class.

    • by registrations_suck ( 1075251 ) on Monday September 01, 2025 @01:56PM (#65630734)

      Modern definition of "loophole": when something works in a way that I don't like.

      • Modern definition of "loophole": when something works in a way that I don't like.

        I thought that was "weaponize"

    • Amazon has flooded DC with lobbyists trying to get De Minimus repealed. Analysts estimate ending De Minimus will increase Amazon sales by $22-25B. It is also generates instant profit for Amazon since Amazon charges a blanket 15% finder fee. It the a vendors pays $100 in tariffs Amazon adds their 15% right on top of that taking an addition $15 for doing absolutely nothing. Analyst estimate for that markup effect is an increase in $1.5B/yr in Amazon profits.

      In the larger picture most economist are predicting

      • by shilly ( 142940 )

        Have you got any actual links to articles about most economists predicting this? Because your assertion that only trinkets are bought under the de minimus exemption is just a fact-free assertion at this point

  • packages valued under $800 ... The de minimis threshold, raised from $200 in 2016 ...

    I don't know about getting rid of this completely, as it seems silly to tariff the types of things for which this was intended, but Google says "de minimis" means "of minimal things" and a $200 value limit seems closer to more appropriate than $800.

    Arguing against this exception... what's to keep sellers from splitting up expensive things into multiple packages valued at under the limit? Guessing there's some sort of language prohibiting that in the statute, but how would that be detected/enforced?

    • by Luckyo ( 1726890 ) on Monday September 01, 2025 @01:57PM (#65630738)

      We had this exact problem in EU, and our de minimis was way lower than that in US.

      We ended up eliminating it before you did. For exact same reason. What happened is that PRC sellers now ship wholesale to ports they already own (Piraus is big for this), fake low value on the whole container (and since receiving port is Chinese-owned, locals don't look too closely at what's in the actual container in terms of value) and then ship to large scale storage across EU. Then sales are officially made "from EU", so they're de facto exempt on tariffs even without de minimis.

      There's now a crackdown on this. Port of Piraeus is in fact singled out by authorities for this last I checked, and there's now additional scrutiny on containers coming from PRC there to prevent this specific circumvention technique.

    • Fast forward 10 years and _de minimis_ will be reinstated, as the gov't discovers that it costs $25 to collect a $0.75 import duty on a $25 purchase from overseas.

    • It was raised to 200 in 1993, so I don't think a crazy increase for a 20+ year time period. I think AUS is around 650 exemption.
  • Not a loophole (Score:5, Informative)

    by mspohr ( 589790 ) on Monday September 01, 2025 @01:49PM (#65630698)

    This was intentionally put in the regulations to avoid the excessive paperwork and delay for small purchases. It was originally $200 then raised to $800.
    Trump has to raise revenue to pay for his tax cuts for the rich so he came up with this solution which raises taxes on average folks (about $2400/year by some estimates).

    • Re:Not a loophole (Score:5, Interesting)

      by Registered Coward v2 ( 447531 ) on Monday September 01, 2025 @02:09PM (#65630772)

      This was intentionally put in the regulations to avoid the excessive paperwork and delay for small purchases. It was originally $200 then raised to $800. Trump has to raise revenue to pay for his tax cuts for the rich so he came up with this solution which raises taxes on average folks (about $2400/year by some estimates).

      Yea, I've given up trying to explain tariffs are a hidden tax to some of my MAGA friends, they're convinced the exporting countries pay it and it is free money to the US. They also think this will stop the flow of drugs into the US because now they can't mail them to end users; and that their are Americans lining up for jobs now done by immigrants, except of course them and their kids. The sad part is they are not dumb, just fully bought into what Trump sold.

      • Re:Not a loophole (Score:5, Insightful)

        by mspohr ( 589790 ) on Monday September 01, 2025 @02:11PM (#65630778)

        They are dumb.

      • "This war wasn't started by just one man, and it won't be stopped by just one man."

        When your friends think one billionaire can fix everything, they are dumb. Worse, their messiah having a billionaire dollars, is a big part of the problem: Your friends not recognizing that, makes them more dumb.

        If they don't blame the current president for the cost of eggs and 'high' rate of crime, they are dumb hypocrites.

  • As far as I am concerned, it already ended. The end came when Amazon started charging sales tax.

  • by ArchieBunker ( 132337 ) on Monday September 01, 2025 @01:52PM (#65630708)

    Can anyone from the MAGA camp explain what exactly was wrong with the economy from one year ago?

    • by PPH ( 736903 )

      Negative balance of trade.

  • "The Age of Cheap Online Shopping is Ending for citizens of the USA. The rest of the world is doing just fine, thanks!" FTFY.
    • by nickovs ( 115935 ) on Monday September 01, 2025 @02:38PM (#65630844)
      Indeed. In fact it's about to get even better for the rest of the world. The production capacity in Asia isn't going away any time soon. Suppliers can try to slash their prices by a third to compensate for the tariffs going into the USA or they can cut them by 10%-15% and sell a load more to Europe, the Middle East and Australasia. The later outcome seems a lot more likely. Thanks!
      • Then why are Chines small business going under? I grew up in the US and live in Europe, no one buys as much cheap shit as the US. There is no other economy that can absorb what they are producing.

        The big issue is the Chines economy falling apart. They never recovered from the Evergrande collapse and if they do under the world economy will be hit hard.
    • Just putting this out there, but Peter Zeihan predicts that cheap global shipping itself will falter because the US will quit the job of guaranteeing its safety. Of course, future predictions usually don't come true. But in the few years since he wrote "The End of the World Is Just the Beginning" about the end of the US-lead world order (and thus globalization), it seems like we are speed running the path he described.
  • You could always expatriate yourself.

    It might be tricky to find a country with low taxes on imports.

    I suppose you could try living in a southern Asian country, if they'll take you.

    Then you have the long arm of Uncle Sam with his palm extended and tatooed with "Pay up sucker" due to the US taxing world wide income. Not to mention the difficulty in getting a foreign bank to give you a bank account in your name.

  • by GuB-42 ( 2483988 ) on Monday September 01, 2025 @05:20PM (#65631144)

    Look at the AliExpress prices. They are often so cheap that even with +50%, it is still worth it.

    I commonly see stuff that sell for about $5 on AliExpress or Temu, $10 on Amazon, and $50 retail. Having to pay $7.50 instead of $5 is not "the end of cheap online shopping" to me. It will have an effect for sure, but I guess people will just pay the extra tax than go elsewhere.

  • Burying the Lede (Score:4, Insightful)

    by jsepeta ( 412566 ) on Tuesday September 02, 2025 @01:09AM (#65631908) Homepage

    The entire American way of life is collapsing because millionaires and billionaires are the parasites that killed the host.

  • by CAIMLAS ( 41445 ) on Tuesday September 02, 2025 @01:46AM (#65631932)

    It's amazing how many of you are responding out of emotional vitriol without even understanding import tariffs work in this case. The article rage baited you all.

    This isn't going to put prices through the roof on anything but temu and similar direct-ship sites. Even most amazon-associated warehousers will be unimpacted: they were already shipping in such volumes the 'free' shipping was almost meaningless. It was an exception for - mostly - small trinkets. Raising the amount to $800 didn't matter much - items that really cost $500 were just having a declared value of much less (likely closer to the foreign purchase price).

    You'll still be able to buy cheap trinkets and electronics. Amazon has competitively extinguished all but about 20% of online commerce outside their site.

    More importantly... this will also impact all the illicit pharma people have figured out they could buy from eg. India at a drastically lower price than is available domestically. That's the bigger problem, as there's no other viable alternative for many people.

    Though wasn't there something else crazy going on about pharma prices being globally leveled under threat of Trump? I know there was some sort of insane cutback in... Medicaid? Or Medicare? Hard to keep track of it all.

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