Since the 1930s, there has been an exemption to customs duties when items with a value of less than $800 are shipped into the United States. This is one of the many things that allowed companies like Temu and Schein to dump cheap goods in the U.S., damageing U.S. ecommerce companies. That exemption ends May 2 when an executive order signed by President Trump goes into effect. After that, packages shipped from China and Hong Kong are no longer eligible for this “de minimis” exemption.
Postal shipments from China and Hong Kong were to be subject to a duty rate of either 30% of their value or $25 per item, increasing to $50 on June 1, 2025. A week after the initial announcement, Trump increased the tariff for small packages to 120 percent or $50 per package, doubling to $100 on June 1.
Not only do these costs apply to every shipment, but the shipper has to fill out customs documentation, which can be time consuming. The $30 item you purchased will now cost 120 percent more, or you $66.
I expect several things to happen:
- Chinese shippers will probably lie on the customs documentation to reduce costs. I expect this kind of fraud is already common and will become more so.
- Prices on these sites will be increased and the number of sellers will drop. I hear April 25 is the date new prices are expected.
- There will be a severe drop in sales on Chinese ecommerce platforms because goods can be—for the time being, at least—purchased for less on Amazon.com, Walmart.com and other domestic ecommerce platforms. Sales are already down, according to the video at the bottom of this post.
- Americans will have to adapt to buying less cheap stuff and move away from the disposable lifestyle.
Immediate Benefits
Knowing the de minimis change was coming, I yielded to temptation and headed to Temu, where I bought a few items, something I don’t like to do because 1) China, and 2) rampant rumors of child and slave labor. I was planning to beat the May 2 deadline, but I wasn’t expecting to see the great sales. I purchased two or three items like headlamps for the price of one. Apparently, many of the sellers on Temu are liquidating their inventory. This is an example of the market disruption U.S. tariffs have had on China and their ecommerce platforms targeting U.S. buyers.
My guess is they want to liquidate their remaining inventory or are trying to raise some funds to pay vendors and employees when no new orders are coming in.
Headlamps
I picked up six small rechargeable headlamps for about $11.88. That’s the total price for all six, not each. We already have several of these, and they are good for reading, cooking and other indoor activities when the power is out. I keep one in my EDC bag and another in my truck. I plan to give one to each of my neighbors. These would also be good barter items.
I also picked up two more of the larger, more powerful headlamps I use when I walk the dog every night. The cost was less than $12, total. In the past, they have been $17.99 to $19.99 each, so this was a significant savings. The cheap 18650 batteries in these lights are crap, but I pull them out and use the Tenergy batteries I picked up for a song back in 2022. Unlike the other lights, which have to be plugged into a USB cord to recharge, I can always pop fresh batteries into these if they run down.
These larger headlamps are nice and bright. The seller claims 1,000 lumens, but I suspect it is more in the 600 to 800 range. Still, it is plenty bright enough to see a couple hundred feet. In my experience, these lights wear out and break after a year or two. I am already on my third one since 2020. While I had one spare before, I will now have three. That should cover me another five years.
As I have said before, and as my actions prove, headlamps should be part of your preps.
More Goodies
I also picked up a bore snake for 5.56 and another for 9mm/.38. These averaged $3 each. Now I recognize they are probably knockoffs rather than the official brand, but they look and work just the same. For all I know, they are made on the same manufacturing line. At $3 each, I can stash them in an ammo can cache or my homestead defense bag and have a way to quickly wipe down the bore of my gun. It’s not as good as scrubbing with a brush and patches, but it’s better than nothing.
To wrap things up, I bought three pairs of reading glasses for $8. At that price, if they are not crystal clear, it is no great loss.
I like having multiple pairs of readers because I leave one everywhere I might need them. A pair high-quality prescription lenses sits by my computer and in my reading chair, but I keep cheap ones like these in the workshop, car, at the dining room table, on my bedside table, and in the pocket of my bee suit. I also have a pair in my EDC bag. The need for reading glasses is just one of the many injustices time inflicts on us as we grow older. If you are not there yet, your time will come. Presbyopia (the inability of the eye to focus close up) usually sets in sometime between age 40 and 45.
Beat the Tariffs
I will not encourage you to shop at Chinese ecommerce sites; that’s your choice. I am going to repeat my earlier suggestion to use this interim period to save money and buy items you need before the effects of tariffs are felt in the marketplace and seen on the store shelves. Whether that means you go to Temu, the dollar store, or Walmart to save a few bucks or buy a vehicle or furniture before the price increase is up to you, your needs, and your wallet.
Video of the Week
This video shows clips from China social media with translated English voiceovers and commentary. Note that I have no idea who produces this and other videos published on their YouTube channel or what their politics or motivation might be. Like anything you see on YouTube, take them with a grain of salt.