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3w ago

Trump Ends Duty-Free Import Rule, Reshaping U.S.-China E-Commerce Landscape

An executive order eliminates the 'de minimis' exemption starting May 2, imposing tariffs on low-cost imports and challenging platforms like Temu and SHEIN.

FILE - A worker loads boxes of goods from a truck outside a wholesale clothing mall in Beijing on June 14, 2022. (AP Photo/Andy Wong, File)
Souvenir apparel vendor Duane Jackson completes a sale of "Make America Great Again" caps, that are made in China, at his location in New York's Times Square, Tuesday, April 1, 2025. (AP Photo/Richard Drew)
Photo: Spencer Platt (Getty Images)
FILE - Pages from the Shein website, left, and from the Temu site, right, are shown in this photo, in New York, June 23, 2023. (AP Photo/Richard Drew, FIle)

Overview

  • President Trump signed an executive order officially ending the 'de minimis' trade exemption, effective May 2, 2025, with new tariffs on low-value imports.
  • The tariff structure introduces a 30% duty or $25 per item, increasing to $50 in June, on goods previously exempt under the rule.
  • Chinese e-commerce giants Temu and SHEIN, which relied on duty-free direct shipping to U.S. consumers, are exploring U.S.-based warehousing and local sellers to adapt.
  • Critics warn the new tariffs will disproportionately impact lower-income consumers by raising the cost of inexpensive goods.
  • U.S. Customs and Border Protection faces logistical challenges in enforcing the policy, with over a billion low-value packages entering the U.S. annually.