Overview

• President Trump signed an executive order ending the de minimis exemption for shipments under $800 from China, effective May 2, 2025.
• The tariff rate on affected shipments has been tripled to 90% of their value or $75 per item, rising to $150 per item after June 1, 2025.
• The Commerce Department has confirmed that systems are prepared to collect tariff revenue on these low-value international shipments.
• The tariff hike is a retaliatory measure against trade practices and tariffs imposed by China's government.
• Critics, including Forever 21 and the Cato Institute, warn the policy could harm U.S. businesses and consumers by raising costs and disrupting supply chains.