De Minimis Exemption Crackdown: Could the New Rules Choke Off Affordable Hi-Fi Gear from China to America?

If you’ve ever bought affordable Hi-Fi gear—like DACs, headphone amps, speakers, or accessories—from Chinese giants like AliExpress or directly from brands like Topping, SMSL, or Fosi Audio, you’ve benefited from a trade loophole called the de minimis exemption.

This longstanding exemption allowed packages valued under $800 to enter the U.S. without tariffs, making it possible for American audiophiles to snag high-quality gear at unbeatable prices. The logic behind it was simple: it wasn’t worth the government’s time and money to chase small fees on low-value shipments.

According to U.S. Customs, about 60-70% of the 1.4 billion de minimis packages came from China. That means, on average, 840 million to 980 million packages annually were entering the U.S. from China under the de minimis exemption.

That era is coming to a hard stop. As part of the escalating trade war with China, President Donald Trump signed an executive order ending the de minimis exemption for packages coming from China and Hong Kong. The new rules go into effect on May 2, and they’re expected to seriously impact the flow—and affordability—of popular Chinese Hi-Fi gear entering the U.S. market.

In response to the end of the de minimis exemption, Hong Kong’s postal service has suspended package delivery to the U.S., and Chinese-based retailers like Shein and Temu have already announced price increases for U.S. customers starting April 25, citing higher operating costs. They’re just the tip of the iceberg.

In the Hi-Fi world, brands like FiiO have already confirmed a price hike of up to 40%, effective May 1st—and they won’t be the last. Other companies that fulfill orders directly from China, including some Amazon sellers, could also get hit.

What does this mean for consumers? Expect higher prices, possible shipping delays, and fewer “too good to be true” Hi-Fi deals coming out of China. And with more uncertainty around logistics and tariffs, the days of $99 DACs and $300 high-end headphones from overseas could be numbered.

Sadly, many of the companies we just focused on in our “Top Affordable Hi-Fi Brands” feature will be impacted by this significant tightening of the rules next week.

Why is this Happening?

President Trump pulled the trigger on killing the de minimis exemption for Chinese and Hong Kong imports, but he wasn’t the one who loaded the gun. Ending de minimis had been brewing for years, with both Democrats and Republicans pissed off about the same things: a flood of cheap goods, counterfeit junk, and fentanyl sneaking in under the radar.

In September 2024, 126 House Democrats — not exactly MAGA hats — pushed Biden to slam the door on Chinese imports under $800. Their argument was simple: American manufacturers were getting gutted, union jobs were vanishing, local stores were dying, and dangerous garbage was pouring into the country, all wrapped up in neat little packages marked “no duty required.”

Biden’s administration didn’t sit on its hands either. New rules were proposed, stricter shipping data demanded, and entire industries like apparel and textiles targeted for exclusion. Congress was called on to finish the job.

Trump’s executive order just made it official. But this wasn’t some one-man crusade. It was years of bipartisan anger finally boiling over—and now it’s the consumers and industries built on affordable Chinese goods, like budget Hi-Fi, that are standing in the blast radius.

Is There a Way Around this for Manufacturers?

In theory, businesses could dodge the new rules by routing shipments through a third country where the de minimis exemption still stands — the so-called “Tijuana two-step.” Ship a $1,500 package from China to Mexico, break it into two $750 parcels, then slide it into the U.S. under the radar.

In practice? That’s a logistical nightmare for Hi-Fi manufacturers. Adding extra shipping legs, warehouse stops, and repackaging costs kills the slim profit margins these companies already operate on. It’s not just a paperwork headache — it’s a real-world disaster. Most won’t bother. Prices will go up, selection will shrink, and those days of snagging killer DACs, amps, and headphones from China at bargain prices? They’re almost over unless all of this gets reversed in the coming days.

What can You Expect to Pay Starting Next Week?

American consumers should brace for higher prices — and longer waits — starting next week. While companies like Shein and Temu are already promising to “minimize the impact,” the truth is there’s only so much lipstick you can put on a pig.

For Hi-Fi buyers, it’s about to get ugly. Brands like FiiO have already announced price hikes of up to 40% effective May 1st. That $500 DAC you had your eye on? It’s about to cost $1,000 or more. A $99 portable amp might jump to $140 or $150. Even mid-tier products from companies like Topping, SMSL, and Hidizs will get dragged into this mess.

Packages will also be subject to a $100 parcel tax beginning on May 2, and a $200 tax per parcel beginning on June 1. And that doesn’t include the tariffs and shipping which is not going to be free anymore.

And it’s not just about money — it’s about time. Previously, a DAC ordered straight from Shenzhen might land on your doorstep in a week. Now? Every package must be individually declared and processed through U.S. customs, which could easily tack on another week or two, depending on port traffic and how fast customs can chew through the growing backlog.

The Bottom Line

The reality is hitting hard: tariffs, rising shipping costs, and delays are about to jack up prices for Chinese-made Hi-Fi gear. The days of scoring a flagship DAC from China for under $1,000? Gone. With tariffs pushing base prices up by 145%, plus additional costs ($100 tax per parcel) for processing customs paperwork and shipping delays of 2–4 weeks, the final cost could be 3x what it was a month ago.

So, what’s your move? If you’re after the same gear, you might be looking at a $2,000–$3,000 price tag, assuming you’re willing to wait. If not, the alternative is domestic brands like Schiit Audio, Grado Labs, Audeze, and Linear Tube Audio—American-made gear that’s not caught up in the mess and is set to become your best bet for affordable, high-quality audio. Get ready to support local, or watch your options shrink.

The reality is that the tariff dispute will likely get resolved over the next few months but don’t expect things to go back to normal. Higher prices and some level of tariffs is the most likely outcome. This might be the best time to reach out to local Hi-Fi dealers and online retailers to snag a deal before all of this uncertainty makes things unaffordable.

Related Reading:

• A Sign of the Times? Anker has Reportedly Raised Prices on Some Products on Amazon
• Bluebird Music is Holding the Line on Prices: Begun the Tariff Wars We Have
• Chi-Fi in the Time of Self-Righteous Indignation