Why Your Online Shopping Just Got More Expensive

If you’ve gotten used to “shopping like a billionaire,” those great deals on bargain sites like Temu and Shein are becoming casualties of President Donald Trump’s trade war with China.

On Friday, a White House executive order went into effect shutting down a tax loophole called the “de minimis” exemption. That exemption allowed packages valued less than $800 to be shipped directly to U.S. customers from China. That exemption was the foundation of the business model of discount shopping sites. Those deals are getting fewer and farther between now that packages are subject to the tariffs Trump has levied against China as part of his effort to bring manufacturing back to the U.S.

Both retailers have raised prices significantly in response to the tariffs going into effect, according to reporting by Bloomberg, which found some items on Shein had more than quadrupled in price. Temu had stopped shipping items from warehouses in China, and only offered items that were already in warehouses in the U.S.

The immediate jump in prices could be a taste of things to come for U.S. consumers. Economists widely expect Trump’s broad tariffs to drive up the cost of living over time. Things like toys that are mainly made in China could see drastic price hikes and shortages, according to trade experts.

The White House said the exemption was hurting American businesses and had been abused to smuggle drugs, including fentanyl.