Trump Closes Tariff Loophole on Chinese Imports

The Trump administration has ended the 'de minimis' exemption, which previously allowed low-value shipments from China and Hong Kong, including goods from e-commerce giants like Shein and Temu, to enter the U.S. duty-free. This closure, enacted via executive order, imposes significant tariffs or flat fees on packages under $800, with the goal of curbing both the influx of cheap goods and the smuggling of illicit substances such as fentanyl. Customs authorities are prepared to enforce the new measures, which are expected to raise prices and lengthen delivery times for American consumers, particularly impacting lower-income households that make up a large share of recipients. The White House has emphasized that the move is also a response to the health crisis caused by synthetic opioid imports, citing the exploitation of the loophole for drug trafficking. Industry experts anticipate a notable decline in international air cargo traffic as a result, with broader implications for global trade and U.S.-China relations. China has said it is evaluating Washington’s offer to discuss the tariffs, as trade tensions between the two countries persist.