CINCINNATI — Starting Friday, President Trump is ending a decades-old exemption that allowed international packages worth $800 or less to enter the U.S. without tariffs.
The policy change means millions of small packages that previously entered duty-free will now be subject to import taxes ranging from 10% to 50%, depending on the country of origin.
Financial advisor John Bovard expects businesses to pass these new costs directly to consumers, particularly affecting popular online retailers.
"It could impact things like Temu, when you're buying things online," Bovard said.
WATCH: How you could be impacted by the exemption ending
Previous tariffs already showed price impacts
We've already seen how tariffs can affect shoppers. Back in May, we spoke with Brenda Buschle of Colerain Township, who frequently orders from Chinese retailers and noticed immediate price jumps when previous tariffs took effect.
"I buy a lot of supplies for my business. This shirt is from Temu," Buschle said.
She had ordered a three-pack of Capri pants for $17, but within days of tariff implementation, those same pants more than doubled in price.
Bovard warns similar increases are likely now, though the overall impact on families may be more manageable than some predictions suggest.
"A lot of companies have come out and said they're going to try to absorb the price increases on these, but at the end of the day, I would expect it to be passed onto the consumer," Bovard said.
A recent Yale study suggests the policy could cost American families about $163 per year.
"So not a huge impact compared to what you may hear reported by the press," Bovard said.
Shipping delays expected
The bigger disruption may come from complications with the postal service. Millions of duty-free packages enter the U.S. daily, and postal operators in at least 25 countries have already suspended U.S. shipping, citing confusion over the new rules.
"There's going to be more shipping delays, processing times, and also companies not knowing how to track some of these additional costs and making sure they're in compliance with these new rules," Bovard said.
The timing could have a particularly significant impact on holiday shopping.
"Between now and even as we get into the holiday season, when people are ordering a lot of these smaller types of gifts, I think it could cause some disruption from that standpoint," Bovard said.
Bovard's advice for consumers includes considering buying in bulk when possible to offset higher per-item costs, helping shoppers avoid wasting money on individual purchases that may carry higher tariff burdens.
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