Trump Ends Exemption for Low-Value Chinese Imports

The President of the United States, Donald Trump, revoked the duty-free exemption rule for low-value imports from China and Hong Kong on Friday, May 2, 2025. In the context of trade, de minimis means goods that are too small or insignificant to be considered.

As cited by Anadolu, the U.S. duty-free policy for shipments worth less than $800 was revoked following an executive order signed by Trump on April 2, 2025. "It’s a big scam going on against our country, against really small businesses. And we’ve ended, we put an end to it," claimed Trump.

E-Commerce Platform

Imports from China and Hong Kong will now be subject to tariffs and all relevant duties. This decision is predicted to have a significant impact on e-commerce platforms such as Shein, Temu, and third-party sellers on Amazon who previously used this loophole to avoid import duties.

Goods from China can now be subject to tariffs of up to 145 percent. "The way we shop online will never be the same," said Ram Ben Tzion, CEO of the logistics platform Publican, in his comment to CBS News as quoted from Saudi Gazette.

Backlogged Packages

Citing Supply Chain Brain, Trump previously implemented the same rule against China on February 3, 2025. When Trump revoked the de minimis exemption for China back then, there were numerous reports of backlogged packages in customs facilities, as CBP struggled to handle the sudden influx of shipments that could no longer be quickly processed without additional duties or oversight.

Low-Value Goods Shipments

Strait News Global reported that the U.S. Postal Service (USPS) stated that it will not be involved in collecting any duties. Instead, a USPS spokesperson said that airlines and shipping operators need to collaborate with senders and Chinese postal authorities to pay import taxes and show proof before goods are transported out of China or Hong Kong.

Low-value goods shipments from China to the U.S. are estimated to reach $5.1 billion in 2024, according to the U.S. Census Bureau data. This figure makes it the seventh largest import category from China to America.

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