That $14 Shein blouse in your cart might not be such a bargain anymore.
In 2025, the U.S. government officially ended a long-standing trade rule known as de minimis. For years, this policy allowed shipments valued under $800 to enter the country without tariffs or duties. Now that the exemption is gone, consumers ordering directly from overseas retailers are about to feel the difference in their wallets.
What was de minimis?
The de minimis threshold was designed to simplify trade by letting low-value packages skip customs duties. It quickly became a critical enabler for fast-fashion giants and direct-to-consumer (DTC) brands.
What Changes now?
With the end of de minimis, every imported shipment will be tariffed based on its country of origin and Harmonized Tariff Schedule (HTS) code, regardless of its dollar value.
For consumers, this means:
- If an item ships from a domestic U.S. warehouse, no change — no duties are added.
- If an item ships directly from overseas, carriers like FedEx or UPS will now contact customers to collect duties before delivering the package.
The result? Shoppers may see their bargain finds suddenly costs more than expected.
Case study: A Shein shirt
Let’s walk through a real-world example to see how this plays out.
I ordered a cotton blouse from Shein to Atlanta, GA, shown in this order summary.
Here’s the breakdown:
- Shirt price: $14.37 (after discounts from $25.19)
- Shipping: $3.99
- Sales tax: $1.61
- Total paid to Shein: $19.97
Now, under the new rules, I checked the HTS code for this item:
- 6206301000 – Women’s or girls’ blouses and shirts of cotton (not knitted or crocheted).
- Country of origin: China.
Using project44’s tariff simulator, I found the expected duties:
The tariff rate for this HTS code from China is 46.49%, meaning an additional $6.68 in costs for this shirt. That pushes the true cost of my $19.97 order up to $26.65.
What this means for shoppers
The end of de minimis changes the online shopping experience in three big ways:
- Sticker price ≠ final price. What you pay at checkout may no longer reflect your true cost.
- Delivery could be delayed. Carriers must collect duties before releasing packages, adding friction to delivery timelines.
- Retailers will adapt. Some may stock more U.S. warehouses to avoid tariffs, while others pass costs straight to consumers.
For budget-conscious shoppers, this means that “fast fashion” may start to feel a little slower — and more expensive.
Looking ahead
For years, de minimis shielded consumers from hidden import costs and fueled the explosive growth of low-cost DTC brands. Its end marks a major turning point in cross-border e-commerce.
Retailers will need to become more transparent about shipping origins, and consumers should be prepared for extra charges on overseas orders.
Want to know what duties might apply to your next shipment? Try project44’s tariff simulator — already available in Movement and coming soon to our website.
