The de minimis exception, which has allowed companies to import low-value items with out duties from China and Hong Kong, has expired as of 12:01AM ET at the moment as a part of President Trump’s govt order signed final month.
Many companies within the US depend on the de minimis loophole. Any bundle valued beneath $800 — together with electronics, toys, and clothes from corporations like Shein — can come to the US duty-free beneath the exception, leaving the merchandise super-cheap for consumers. In 2024, about 1.4 billion packages coming into the US claimed exemption from duties beneath de minimis. Retailers Shein and Temu have already raised costs to account for tariffs.
The Trump Administration’s new guidelines will add both a 30 p.c charge to the worth of each bundle shipped to the US, or $25 (with a rise to $50 beginning June 1st) — a selection each postal service should make and apply to all parcels. The brand new charges are being carried out after Trump hit most Chinese language items with excessive tariffs final month, launching an escalating commerce warfare that ended with a 145 p.c import tax enhance. In retaliation, China has added a 125 p.c charge on US items.