MIAMI-DADE COUNTY, Fla. – U.S. consumers who rely on online shopping for convenience may soon face higher prices as new tariffs on Chinese imports take effect, impacting platforms like Shein, Temu, and Amazon, and forcing both shoppers and small business owners to adjust.
The tariff changes stem from a proposal made during the Biden administration, moving forward under the Trump administration.
The proposed CBP rule, introduced on Jan. 17 — just days before Biden’s inauguration — ends the duty-free exemption for low-value shipments under $800 and adds a 10% tariff on Chinese goods.
For Monica Montes, an online shopper and co-owner owner of Muna Media, convenience is key.
“Since I am a mom, I have lots of things to do,” Montes said.
Montes says she frequently buys clothing from Shein and home goods from Amazon, where she enjoys the benefits of Prime.
“I really appreciate that Prime doesn’t charge me anything,” she said.
However, those purchases could soon become more expensive.
Trade expert Lenny Feldman, a managing partner at Sandler, Travis & Rosenberg, PA, specializing in international trade law. explained the new regulations, which eliminate duty-free imports on low-value shipments under $800 and add a 10% tariff on Chinese goods.
“It is very possible that you might see those packages that were coming to our doorstep — the prices going up a little bit,” Feldman said.
The new policy is expected to significantly impact consumers who rely on inexpensive online purchases.
“Look at those prices. What you thought was going to be maybe a $30 dress from your favorite online retailer might be looking at $50 or $60,” Feldman said.
Impact on Local Retailers
Some see a potential upside to the tariff changes. Maria Paula Cardona, who co-owns Muna Media with Montes, raised an interesting question.
“It could be an opportunity for local peoples,” he said, suggesting that the tariffs could boost business for brick-and-mortar stores.
Feldman noted that traditional retailers could gain a competitive edge, as they already pay similar import duties.
“If you are talking about those full container loads that go to those retailers, those big box stores, they actually might be at a competitive advantage in certain respects,” he said. “Now these online retailers are going to have to pay the same amount of duties and fees.”
However, businesses dependent on Chinese imports will face higher costs across the board.
“The additional 10% is going to be problematic for everybody,” Feldman said. “But again, there are hundreds of countries we import from, so this is about diversifying your trade portfolio. There are alternatives to China.”
Small Businesses Urged to Adapt
Feldman advised small businesses to explore strategies to reduce supply chain costs, highlighting lessons learned by major apparel brands.
“The apparel companies for years — like the Perry Ellis of the world — were always paying a base rate of 15-30%. They wanted to know how to lower that in the ‘80s and ‘90s before any of this, so they are very well equipped for these strategies,” he said.
The tariff changes are a new challenge for industries that have historically operated without such fees.
“There are toy companies in South Florida that are calling me because they were duty-free all this time,” Feldman said. “Even through the China tariffs so far, now they are getting 10%, and they are questioning it.”
He encouraged businesses to study tariff mitigation strategies, such as structuring transactions to declare a lower customs value.
“Do your homework, learn what the strategies are, what those tariffs are, and find ways to mitigate them or avoid them altogether,” Feldman said. “There are lots of options.”
A Shift Back to In-Person Shopping?
For Montes, the changing landscape might mean returning to traditional retail.
“I think people need to go to the stores,” she said. “I always shop for clothing in a store because I like to try things on.”
With rising costs for online purchases, shoppers may be forced to reconsider how they buy their everyday goods.
“We need to go back to experience shopping,” Montes said with a laugh.