US President Donald Trump has signed an executive order to revoke the duty-free status previously granted to low-value packages from China and Hong Kong.
The move targets the de minimis [ too small to be meaningful] rule, which permitted shipments under $800 to bypass duties upon entering the US.
Legislators have long been contending that the policy provides an advantage to Chinese online retailers such as Temu and Shein, allowing them to offer more competitive pricing.
The directive follows Trump's initial decision in February 2025 to terminate the de minimis exemption for inexpensive Chinese goods. Its implementation was delayed due to logistical challenges in processing the vast number of affected shipments.
Effective from 2 May, the revised stipulations mandate that all imported goods arriving through channels other than the international postal network, valued at $800 or less and previously qualifying for the de minimis waiver, will now be subject to standard duties. These must be paid following existing entry and payment protocols.
For postal items within the same value range sent via the international postal network, a duty rate of 30% of the item's value or $25 per item, whichever is greater, will be imposed.
This rate will increase to $50 per item after 1 June.
Carriers are responsible for reporting shipment information to US Customs and Border Protection (CBP), maintaining an international carrier bond for duty assurance, and adhering to a prescribed duty remittance schedule.
CBP retains the authority to demand formal entry for any postal package in lieu of applying these specific duties.
Within 90 days of this announcement - at the beginning of June 2025 - the Secretary of Commerce will present a report evaluating the impact of the order and deliberating on extending these regulations to include packages from Macau.
CBP data reveals that more than 1.36 billion de minimis shipments were processed in 2024 - an increase from more than 1 billion in 2023.
In September of that year, the US Consumer Products Safety Commission was urged to investigate Shein and Temu regarding the sale of “deadly baby and toddler products.”
