US Ends De Minimis Exemption for China Imports

The Trump administration has ended the 'de minimis' tariff exemption for small packages valued under $800 from China and Hong Kong, effective May 2, 2025. E-commerce retailers such as Shein and Temu now face tariffs of up to 145%, while postal shipments incur 120% duties or flat fees, with increases scheduled in June. The policy aims to protect U.S. manufacturers and curb illicit drug imports, but critics warn of higher consumer prices, product shortages, and layoffs. Enforcement may be complicated by customs rule waivers, though U.S. Customs and Border Protection claims readiness for increased screening. Some foreign retailers are withdrawing from the U.S. market or raising prices. The move intensifies the U.S.-China trade war, with significant effects on global e-commerce, consumer costs, and supply chain innovation.