The US is closing a duty-free loophole for low-value packages, impacting online retailers like Shein and Temu. This "de minimis" exemption, allowing imports under $800 without duties, is being eliminated due to concerns about smuggling and unfair competition for American businesses. President Trump's action will result in higher prices for US consumers, as companies like Shein and Temu have already announced price increases. The move aims to combat the illegal import of drugs and ease pressure on border authorities overwhelmed by the volume of packages. Similar reviews of low-value import exemptions are underway in the UK and EU.

Prepared by Christopher Adams and reviewed by editorial team.