President Donald Trump has threatened to place tariffs on multiple countries, including close trading partners Mexico and Canada.
But experts worry about how these hefty tariffs — which are taxes paid by importing companies, not foreign nations — will impact the average US online shopper.
Personal finance expert Matt Schulz at LendingTree says US consumers have come to increasingly rely on e-commerce.
“So many people did most if not all of their holiday shopping online,” said Schulz. “So, it's a really significant thing in this country — no question about it.”
While tariffs against Mexico and Canada have been delayed for at least a month, levies on China are set to go into effect Tuesday.
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The tariffs include the suspension of a trade loophole known as “de minimis,” which allows foreign companies to ship packages worth less than $800 into the U.S. duty-free. The loophole has helped low-cost Chinese e-commerce companies like Temu and Shein, as well as the largest online retailer Amazon, to ship bargain priced items directly to customers.
Without this loophole experts say companies will have to find ways to offset rising costs, which includes raising prices for consumers.
“We're going to see higher prices for consumers, period,” Maggie Barnet, CEO of LVK, a third-party logistics company, told Scripps News. “That's going to happen. That's the easiest way to solve this issue for those brands.”
Barnett said the tariffs will also significantly change how U.S. consumers shop online.
“I think people are going to start to see that it's not great to be consuming this much and maybe it'll help them think twice,” Barnett said, “Like, hey, I would spend $8 for that, but not $18. And maybe the consumption will go down. However, that's a hard trend to change.”
