Opinions expressed by Digital Journal contributors are their own.
It is official: shopping in the U.S. shifted dramatically on May 2, when the government officially closed the long-standing de minimis tariff exemption for imports from China and Hong Kong. Under the new rules, packages valued under $800 now face steep tariffs, 30% or $25 per item, which will rise to $50 per item starting in June.
According to a report by The Guardian, these charges are in addition to the current 145% tariffs on Chinese imports. The ongoing U.S.-China trade war drives this move, aiming to curb the influx of low-cost goods from Chinese e-commerce giants.
How does this impact shoppers in the U.S and worldwide? How does a cross-border gifting company, SodaGift, rise to keep customers shielded from the effects of de minimis?
Facing the aftermath
For American shoppers, the end of the de minimis loophole means the end of bargain-priced goods. Famous fashion platforms like Shein and Temu have begun passing on the new costs to consumers, with surcharges appearing at checkout for Shein. At the same time, Temu now restricts access to Chinese-shipped products entirely.
According to U.S. Customs and Border Protection, more than 1.36 billion shipments entered the U.S. under the loophole in 2024 alone. That represents over 90% of all cargo, most from China. As a result of this new rule, consumers and businesses express intent to increase prices, reduce variety, and potentially cause shortages as they adjust to the new reality.
Even major U.S. retailers are not immune to these changes. Walmart and Target face significant challenges with their predominantly Chinese supply chains. Their lack of agility in quickly relocating manufacturing operations to tariff-free countries can translate to a troubling future of higher prices in the short term and potential product shortages and limited selection in the long run.
SodaGift: a different approach to cross-border gifting
Amid this changing trade environment, SodaGift’s model highlights resilience and innovation. The cross-border gifting company builds its model around a decentralized, local fulfillment network, unlike traditional cross-border sellers.
Jake Kim, CEO of SodaGift, partners with merchants and couriers in over 40 countries to certify that gifts are sourced and delivered within the recipient’s own country. This technique means gifts never cross international borders, sidestepping customs declarations, shipping delays, and, crucially, associated tariffs.
“We designed SodaGift from day one to avoid the fragility of cross-border shipping,” mentions Jake Kim. “While others now scramble to restructure their operations, we’re already operating at scale in a tariff-proof way.”
The rise of digital gifting: the SodaGift advantage
Kim believes that the ongoing tariff changes highlight the value of digital gift-giving. SodaGift’s model changes international gift-giving through a streamlined process designed with both sender and recipient in mind. Users send gifts using only the recipient’s email address, mobile number, or social media handle; no physical address is required.
When a sender selects a gift, SodaGift generates a unique URL link that the sender shares with the recipient through any preferred method: email, text message, or social platforms like WhatsApp, Facebook, Telegram, or LINE. The recipient then clicks the link and inputs their shipping details, preserving the element of surprise while guaranteeing accurate delivery.
“The beauty of digital gift-giving lies in its immediacy and accessibility,” Kim notes. “Whether you’re stuck in traffic or lounging on your couch, you can now send a meaningful gift to anyone, anywhere in the world, at any time. This level of convenience has transformed gift-giving from a planned activity to a spontaneous expression of care.”
With an extensive catalog of digital gift cards from local brands worldwide, consumers can now explore the beauty of digital gift options. These virtual gifts arrive instantly and completely avoid any shipping or customs concerns, providing a frictionless option for international gifting regardless of political or economic fluctuations.
Kim mentions, “Before, we were focused on convenience as our main value to customers. Today, with the new tariff policies, our customers can also enjoy the digital gift-giving model we established. Sending cross-border digital gifts has never been more beneficial than today.”
A strategic edge in an uncertain trade environment
Different platforms grapple with the new tariff regulations, but SodaGift’s cross-border gifting offers a forward-thinking perspective on international commerce – one that decentralizes, adapts, and designs for resilience in an increasingly changing global economy.
The platform’s model enables 100% customs-free gifting, faster delivery times, lower total costs for senders, and full compliance with evolving international trade policies. SodaGift helps consumers stay connected across borders without the high costs of international shipping, turning challenges into opportunities.
With global gift-giving projected to continue its post-pandemic growth trajectory, SodaGift has positioned itself not merely as an alternative to traditional international shipping but as the smarter, more sustainable path forward in a complex global marketplace.
