WASHINGTON – As part of President Trump’s sweeping reciprocal tariff actions yesterday, the Administration eliminated duty-free de minimis status for low-value imports from China.
The executive order impacts imported goods from China and Hong Kong sent through means other than the international postal network. Previously, when such goods were valued at or under $800, they were exempt from duties. As of May 2, they will be subject to a tariff of 30% of their value or $25 per item – increasing to $50 per item after June 1.
The de-minimis exemption had generated huge business for inexpensive goods sold by companies such as Shein and Temu. Amazon jumped into the mix last fall, quietly launching a mobile-only service called Haul that offered extremely low-price items that mostly came from China.
On average, U.S. Customers and Border Protection processes over 4 million de minimis shipments into the U.S. each day, according to a U.S. government fact sheet issued yesterday. The U.S. Customs and Border Protection reported processing more than 1.3 billion de minimis shipments in 2024, up from more than 1 billion shipments in 2023.
As of May 2, carriers transporting postal items that had been subject to the de minimis policy must now report shipment details to U.S. Customs and Border Protection (CBP), maintain an international carrier bond to ensure duty payment, and remit duties to CBP on a set schedule.
This marks the Trump Administration’s second go at the de minimis exemption. In February, Trump ended the policy abruptly, but both the CBP and U.S. Postal Service were unprepared to handle the new requirements, so the President lifted the order.
In issuing the new order yesterday, the Administration asserted that some Chinese-based shippers have exploited to loophole to hide illicit substances, including synthetic opioids, in low-value packages bound for the U.S.
The executive order also requires the U.S. Secretary of Commerce to submit a report within 90 days assessing the impact of the new policy. The department is also to weigh in on whether to extend these rules to packages from Macau.
Credit: homeaccentstoday.com
