Fast fashion became much more expensive for Americans this spring, and it will probably be even more in 2027.
This is because the Trump administration has been dismantling a little known disposition of US customs legislation that, for years, allowed retailers to send tax -free packages to buyers in the US, provided that each shipment had a value of less than 800 dollars.
Known as the exception “De minimis”this rule helped keep prices low on Chinese electronic commerce platforms such as Shein and Temu, promoting their popularity among US consumers.
But as of May 2, 2025, that advantage disappeared, at least for China and Hong Kong. That day, the United States officially eliminated the exemption for low value imports from those places. Suddenly, cheap fashion ceased to be, and the demand of Shein and Temu collapsed.
Although those looking for offers could try to make orders from platforms based in Vietnam or other countries, it is a temporary solution. The exemption will be eliminated for all countries in 2027, thanks to the provisions of the newly approved Tax and Expenses Law Project.
But what is “of minimis”?
I am a marketing professor and this legal issue has long been interested in.
Cheap dresses and insignificant issues
Of Minimis is the abbreviation of the Latin phrase of Minimis Non Curat Lex, which means “the law does not deal with trifles.” In commercial terms, minimis exemption refers to a value threshold below which imports can enter a country without paying tariffs.
It is as if the government said: “It’s so cheap that it is not even worth collecting taxes.”
The exemption of Minimis was introduced as part of the tariff law of 1930 and was originally set at $ 200. That limit remained until 2016, when the United States raised it to $ 800. This increase benefited both small businesses and individual buyers.
Between 2016 and 2023, Minimis shipments multiplied by six, exceeding one billion annually.
However, he left large companies at a disadvantage, which import wholesale products. This is one of the reasons why, historically, the same dress could cost more in an American retail store than when buying it online from a foreign platform.
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A study case; Your Shein dress for $ 20
Imagine that it is January 2025, you are sailing for Shein and you find a fashion dress for $ 20. You make the order and the seller sends it to your home.
When the package reaches the US border, as its value is below the threshold de minimis Of 800 dollars, the Office of Customs and Border Protection exempts the importer (in this case, you) to pay any tariff. You pay only 20 dollars.
Now imagine you try to buy the same dress in mid -July.
Executive Order 14256, issued on April 2, establishes that an article sent from China or Hong Kong by international mail could be subject to an AD VALEEM tariff of up to 20% of its value, or a specific charge per package, which could be 100 dollars or more.
This percentage increased to 30% on April 8 and 84% the next day. In the most recent modification, of May 12, the tariff was reviewed to 54%.
Taking that 54%as an example, the import tariff for your $ 20 dress would be $ 10.80, raising the total cost to $ 30.80. Of course, this modification comes with the usual warning: it will remain in force “unless it is modified by a subsequent executive order.”
For millions of American consumers, this has been a call for attention: fast fashion, which used to be tax free, is now significantly more expensive. Buyers who seek to save could resort to vendors in India or Mexico, where exemption de minimis It is still in force, at least for now.
The Law “One Big Beautiful Bill” eliminates this exemption worldwide as of July 1, 2027.
Commercial policy under the presidency of Donald Trump has been unpredictable, and the rule de minimis It has not been the exception. But with its already legislated global elimination, its future seems clearer.
Although it is always advisable to stay attentive to the decisions of the White House, everything indicates that exemption de minimis In the United States it will soon be a thing of the past.
*Vivek Astvansh is an associate professor of quantitative marketing and analysis at McGill University.
This article was originally published in The Conversation
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