Tariffs play a major role in shaping international trade and influencing the prices consumers pay for everyday goods. Recently, changes to tariff policies have brought new challenges for shoppers, importers, and global businesses alike. This article explains what tariffs are, how they function, and what the latest updates mean for your wallet.
A tariff is a tax imposed by a government on imported goods. Tariffs are typically used to protect domestic industries, generate revenue, or retaliate against trade practices deemed unfair. They affect the final cost of imported products, often resulting in higher prices for consumers.
In May 2025, significant changes to US tariff policy took effect with the expiration of the de minimis exemption. Previously, this loophole allowed items worth $800 or less to enter the United States duty-free. As a result, platforms like Shein, Temu, and AliExpress could offer low-cost international goods with minimal extra fees for American shoppers.
According to CNN Business, ending the de minimis exemption means that countless parcel shipments now face new tariffs. Shipments from China and Hong Kong, for example, can be subject to tariffs as high as 145% depending on the carrier. Read more about the end of the de minimis exemption and its effects.
For regular consumers, the impact of these tariff changes is immediate and visible. Higher duties on imported goods may increase prices, particularly for popular online purchases from overseas marketplaces. Many Americans who relied on budget-friendly platforms for clothing, electronics, and household items are now seeing costs rise.
The shift in tariff policy also means delivery times may become longer due to increased package inspections at customs. Some carriers, like DHL and FedEx, have ramped up staffing to manage the higher volume of formal customs clearances. Others, such as USPS, are imposing steep flat fees per parcel, further impacting affordability.
The effect of higher tariffs on the US economy is a topic of debate. On one hand, tariffs can encourage consumers to buy more domestically made products, potentially supporting local industries and jobs. On the other, higher import costs often trickle down to consumers, hitting lower-income shoppers hardest. Research highlighted by CNN reveals that about 48% of duty-free packages were sent to the poorest zip codes in the country, indicating that increased tariffs could disproportionately affect vulnerable communities.
For more detailed coverage of the policy shift and its aftermath, see this New York Times analysis: Trump's China Tariffs and the De Minimis Exception.
Retailers who depend on international suppliers are adapting quickly. Online platforms may change their business models by encouraging local fulfillment to avoid high import taxes. Companies like Temu have already begun transitioning to US-based sellers to minimize tariff repercussions. However, some goods are still unavailable locally, which has frustrated shoppers who relied on broad access to global products.
Industry reporting from The Wall Street Journal offers more insights into how major e-commerce companies are coping: Temu Stops China Shipments to U.S. Consumers.
Tariffs are reshaping the way Americans shop and how businesses operate globally. Staying informed about ongoing trade policy changes is more important than ever. By understanding tariffs and their effects, consumers can better navigate price changes, delivery delays, and shifts in product availability.
Keep up with reliable updates, compare prices before making purchases, and seek out domestic options when possible. For ongoing coverage, follow reputable resources like CNN Business and The New York Times.