- Order targets packages under $800 from China and Hong Kong
- Order effective May 2
- Carriers must report shipment details to U.S. Customs and Border Protection
On April 2, 2025, President Donald Trump signed an executive order terminating the “de minimis” trade exemption for low-value shipments from China and Hong Kong. This exemption previously allowed goods valued under $800 to enter the United States duty-free and with minimal inspections. The new order is set to take effect on May 2, 2025, reports Marine Insight.
U.S. ends duty-free entry of Chinese goods
The de minimis provision had been utilized extensively by e-commerce giants such as Shein and Temu, facilitating approximately 1.4 billion packages annually—60% of which originated from China. The revocation of this exemption is part of a broader strategy by the Trump administration to address trade imbalances and concerns over China’s trade practices.
In addition to targeting e-commerce shipments, the administration asserts that this measure aims to curb the influx of Chinese chemical exports that allegedly contribute to the U.S. opioid crisis by supplying precursors for fentanyl. China has consistently denied these allegations.
The implementation of this order raises questions about how carriers and U.S. Customs and Border Protection will manage the increased volume of shipments now subject to duties and inspections. The administration has indicated that systems are in place to handle these logistical challenges.
This policy change is expected to have significant implications for U.S.-China trade relations and may impact consumers who have benefited from the availability of low-cost goods through online platforms.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: Marine Insight
