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The Conversation
The Conversation
Vivek Astvansh, Associate Professor of Quantitative Marketing and Analytics, McGill University

That $20 dress direct from China now costs $30 after Trump closed a tariff loophole – and the US will soon end the ‘de minimis’ exemption for the rest of the world, too

Fast fashion got a lot pricier for Americans this spring – and it’ll likely get even more expensive in 2027.

That’s because the Trump administration has been rolling back a little-known feature of U.S. customs law that for years had allowed retailers to ship packages duty-free to U.S. shoppers – as long as each shipment was valued under US$800. Known as the “de minimis” exception, this rule had helped keep prices low on Chinese e-commerce platforms such as Shein and Temu, boosting their popularity with American shoppers.

But as of May 2, 2025, that advantage disappeared – at least for China and Hong Kong. That’s when the U.S. officially eliminated the exemption for low-priced imports from those places. Suddenly, cheap fashion wasn’t so cheap anymore – and demand for Shein and Temu plummeted.

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