Tariff-Fueled Hallmark Price Hike: Essential Information You Should Be Aware Of
The removal of the de minimis exemption for imports from China and Hong Kong has brought about significant changes for U.S. consumers. As of May 2, 2025, low-value goods from these regions are now subject to tariffs and extensive customs processes, a shift that is expected to increase consumer prices for these goods.
According to a White House fact sheet, the surcharge for postal items is set to increase to $200 per item on June 1, 2025. This tariff increase disproportionately impacts small-value imported goods, which were often purchased via e-commerce.
Many popular e-commerce platforms, such as Shein and Temu, have already adjusted their prices to reflect these new import charges. For instance, home and kitchen goods on Shein have seen an increase of 30%, while women's clothing increased by 8%. A bestselling set of 10 kitchen towels on Shein increased by 377%, from $1.28 to $6.10.
The price hikes have not gone unnoticed by customers, with some expressing frustration on social media platforms like TikTok. Hallmark, a company known for its ornaments, has also seen price increases due to tariffs. The Disney's Winnie the Pooh Baby's First Christmas 2025 Ornament, priced at $24.99, is an example of this increase, having originally been priced at $19.99.
Temu, an online shopping platform, has implemented a model where all sales in the U.S. are handled by locally based sellers, with orders fulfilled from within the country. This strategy aims to mitigate the impact of tariffs and customs fees. Certain top-rated or best-selling products on Temu now have a "local" banner next to the item, meaning they are in local warehouses and don't require import charges.
Other companies, like Amazon and Hallmark, are also feeling the effects of these tariffs. Hallmark, which manufactures 75% of its products in its Kansas-based manufacturing facilities, has had to raise prices on some ornaments due to tariffs. The Mom's Love Shines Metal Ornament, for example, is now priced at $22.99, an increase from its original price of $17.99.
Goods shipped via the U.S. Postal Service (USPS) will be subject to this higher tariff or a flat fee of $100 per postal item. A garden camping hammock on Temu, priced at $6.75, is an example of a product that costs no additional import charges or extra charges upon delivery.
The elimination of the de minimis exemption on low-value goods means U.S. consumers must now pay duties to import items from the Republic of China and Hong Kong. As a result, consumers can expect to pay more for items shipped from these regions, as well as any additional shipping costs or taxes.
The Trump administration rolled back the de minimis exemption in May, a move that has led to increased customs workload, delays at the border, and supply chain disruptions, further contributing to higher prices due to increased lead times and administrative costs.
While legal and business challenges are ongoing, with some importers contesting the legitimacy of the exemption removal, the tariff increases stand and directly impact consumer costs for affected goods. U.S. consumers are advised to be aware of these changes and plan accordingly when making online purchases from China and Hong Kong.
References: [1] White House fact sheet [2] CNN Business [3] The Wall Street Journal [4] The Washington Post
- The increased tariffs for imports from China and Hong Kong, as a result of the de minimis exemption removal, have led to a surge in prices for many items on e-commerce platforms like Shein and Temu, with some items seeing an increase of up to 377%.
- In an attempt to offset the impact of tariffs and customs fees, online shopping platforms like Temu are implementing strategies such as handling all US sales with locally based sellers and fulfilling orders from within the country.
- The Trump administration's decision to roll back the de minimis exemption in May has caused a rise in customs workload, border delays, and supply chain disruptions, thereby contributing to higher consumer costs and the need for caution when making online purchases from China and Hong Kong.
