Why Temu's bargain prices are about to hit a tariff wall

Elyse Betters Picaro / ZDNET President Trump has signed an executive order that ends the "de minimis" tariff exemption for low-value imports from China and Hong Kong. This policy change, which will take effect on May 2, 2025, is set to have a ripple effect across the e-commerce world, especially for sites like Temu that rely on affordable, small shipments to keep prices low. Also: Are tariffs about to make your next iPhone way more expensive? It's complicated Here's what it all means and how it will most likely impact you, the consumer. What exactly is de minimis? In simple terms, it refers to a threshold below which certain regulations, taxes, and inspections do not apply. The idea is that imported goods of very little value are not worth the administrative cost of processing. For decades, the de minimis rule has acted as a backstage pass for small packages entering the US. It became law in the US Tariff Act of 1930, allowing items valued at $800 or less to bypass customs duties ... Read full article.