By: City Global Research Analysts
In: News
Feb 6, 2025
Your Temu Purchase Just Got Pricier—Here’s Why
That deal you scored on Temu? It’s about to cost you more.
Your Temu Purchase Just Got Pricier—Here’s Why
That deal you scored on Temu? It’s about to cost you more.
As of February 1, a tariff loophole that let Chinese companies ship small packages to the U.S. duty-free is officially gone. The rule—called the de minimis exemption—was a quiet backdoor that helped e-commerce giants like Temu and Shein flood the market. In 2024 alone, 1.4 billion of these packages landed stateside, double what we saw in 2022.
The exemption itself isn’t new. It dates back to the Tariff Act of 1930, originally designed to let travelers mail home souvenirs without getting hit with extra fees. For decades, the duty-free limit was $200, until Congress raised it to $800 in 2016. But with growing concerns over competition with China—and the risk of illicit goods slipping through—both the Biden and Trump administrations have been looking to shut it down.
What does this mean for your wallet? According to the National Bureau of Economic Research, ending de minimis could hit U.S. consumers with an extra $11 to $13 billion in costs. That’s real money.
Meanwhile, Amazon is watching this play out with a grin. Without de minimis, its competitors take a hit, and it just so happens Amazon launched Amazon Haul—a mobile-only shop with everything under $20. Coincidence? Maybe. Smart timing? Absolutely.
As for Temu, they saw this coming. Instead of small-package shipping, they’re pivoting to bulk. Because in business, the winners don’t just play the game—they change the rules.
Your Temu Purchase Just Got Pricier—Here’s Why
That deal you scored on Temu? It’s about to cost you more.
As of February 1, a tariff loophole that let Chinese companies ship small packages to the U.S. duty-free is officially gone. The rule—called the de minimis exemption—was a quiet backdoor that helped e-commerce giants like Temu and Shein flood the market. In 2024 alone, 1.4 billion of these packages landed stateside, double what we saw in 2022.
The exemption itself isn’t new. It dates back to the Tariff Act of 1930, originally designed to let travelers mail home souvenirs without getting hit with extra fees. For decades, the duty-free limit was $200, until Congress raised it to $800 in 2016. But with growing concerns over competition with China—and the risk of illicit goods slipping through—both the Biden and Trump administrations have been looking to shut it down.
What does this mean for your wallet? According to the National Bureau of Economic Research, ending de minimis could hit U.S. consumers with an extra $11 to $13 billion in costs. That’s real money.
Meanwhile, Amazon is watching this play out with a grin. Without de minimis, its competitors take a hit, and it just so happens Amazon launched Amazon Haul—a mobile-only shop with everything under $20. Coincidence? Maybe. Smart timing? Absolutely.
As for Temu, they saw this coming. Instead of small-package shipping, they’re pivoting to bulk. Because in business, the winners don’t just play the game—they change the rules.
Your Temu Purchase Just Got Pricier—Here’s Why
That deal you scored on Temu? It’s about to cost you more.
As of February 1, a tariff loophole that let Chinese companies ship small packages to the U.S. duty-free is officially gone. The rule—called the de minimis exemption—was a quiet backdoor that helped e-commerce giants like Temu and Shein flood the market. In 2024 alone, 1.4 billion of these packages landed stateside, double what we saw in 2022.
The exemption itself isn’t new. It dates back to the Tariff Act of 1930, originally designed to let travelers mail home souvenirs without getting hit with extra fees. For decades, the duty-free limit was $200, until Congress raised it to $800 in 2016. But with growing concerns over competition with China—and the risk of illicit goods slipping through—both the Biden and Trump administrations have been looking to shut it down.
What does this mean for your wallet? According to the National Bureau of Economic Research, ending de minimis could hit U.S. consumers with an extra $11 to $13 billion in costs. That’s real money.
Meanwhile, Amazon is watching this play out with a grin. Without de minimis, its competitors take a hit, and it just so happens Amazon launched Amazon Haul—a mobile-only shop with everything under $20. Coincidence? Maybe. Smart timing? Absolutely.
As for Temu, they saw this coming. Instead of small-package shipping, they’re pivoting to bulk. Because in business, the winners don’t just play the game—they change the rules.
Latest News
Stay updated with our latest news and stories we share every day!
February 11, 2025
News
These past three weeks, the artificial intelligence (AI) sector has experienced significant transformations with the emergence of two groundbreaking models: DeepSeek and Qwen. These innovations have redefined the AI landscape globally, particularly in terms of cost-effectiveness, performance, and decentralization.
February 11, 2025
News
These past three weeks, the artificial intelligence (AI) sector has experienced significant transformations with the emergence of two groundbreaking models: DeepSeek and Qwen. These innovations have redefined the AI landscape globally, particularly in terms of cost-effectiveness, performance, and decentralization.
February 7, 2025
News
CityGlobal.Earth is rewriting the playbook on product development, manufacturing, and global sourcing for both established and emerging brands. Some see the world as it is—we see what it could be. If you have the fire, the foresight, and the finesse, let’s talk.
February 7, 2025
News
CityGlobal.Earth is rewriting the playbook on product development, manufacturing, and global sourcing for both established and emerging brands. Some see the world as it is—we see what it could be. If you have the fire, the foresight, and the finesse, let’s talk.
November 2, 2024
Uncategory
This year, CNY starts on January 29th and runs through February 2nd, but while the holiday may technically end in early February, production staff won’t fully return until the first week of March.
November 2, 2024
Uncategory
This year, CNY starts on January 29th and runs through February 2nd, but while the holiday may technically end in early February, production staff won’t fully return until the first week of March.
February 11, 2025
News
These past three weeks, the artificial intelligence (AI) sector has experienced significant transformations with the emergence of two groundbreaking models: DeepSeek and Qwen. These innovations have redefined the AI landscape globally, particularly in terms of cost-effectiveness, performance, and decentralization.
February 7, 2025
News
CityGlobal.Earth is rewriting the playbook on product development, manufacturing, and global sourcing for both established and emerging brands. Some see the world as it is—we see what it could be. If you have the fire, the foresight, and the finesse, let’s talk.