Over the past few years, online shopping between countries has grown very fast. One reason for this was a U.S. rule called the de minimis rule, which allowed low-value packages to enter the U.S. without any taxes or customs delays.
But starting on May 2, 2025, the U.S. government removed this rule for shipments coming from China and Hong Kong. This big change affects not only online shoppers and sellers, but also the global shipping and logistics industry.
What is the De Minimis Rule?
The de minimis rule allowed goods under $800 to enter the U.S. without import taxes. Many online stores from China, like Shein and Temu, used this rule to sell cheap products to U.S. customers quickly and without extra costs.
This helped these companies grow fast, offering low prices and fast delivery. However, it also made it harder for U.S. companies to compete.
Why Did the U.S. Change the Rule?
The U.S. government said the change was needed to:
- Protect American businesses from unfair competition
- Stop possible safety risks (such as fake or unsafe products)
- Make sure Chinese sellers follow the same rules as others
Now, packages from China and Hong Kong will go through more customs checks, and many of them will have to pay extra taxes (up to 145% in some cases).
What Will Happen to Online Shopping?
This rule change is already creating problems for companies like Shein and Temu. They are trying to move their warehouses to the U.S., but that takes time and money.
In the short term, U.S. customers will likely see:
- Higher prices for cheap products
- Slower delivery times
- Fewer discount offers
Smaller businesses that buy from China may also struggle with these new costs.
How Does This Affect Logistics?
For the shipping and logistics industry, this rule change brings big changes:
- More customs paperwork and possible delays at U.S. ports
- More demand for U.S.-based warehouses and delivery services
- Less direct shipping from China to U.S. homes
Logistics companies will need to adjust their systems and offer new solutions for international sellers.
How Are Companies Responding?
To keep their business running, many sellers and logistics companies are:
- Finding new warehouse space inside the U.S.
- Moving some production to other countries like Vietnam or Mexico
- Offering new customs services and faster clearance options
Everyone in the supply chain—from sellers to shipping companies—must now find new ways to stay competitive.
A Major Change for Global Trade
Removing the de minimis rule for China and Hong Kong is a big shift in U.S. trade policy. It may protect local companies, but it also brings higher costs and slower deliveries.
For logistics providers, this is a moment to adapt. Companies that respond quickly and offer smart solutions will have the chance to grow in this new environment.
