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2w ago

U.S. Ends Duty-Free Imports From China and Hong Kong, Imposing High Tariffs

The de minimis exemption for low-value shipments is officially eliminated as of May 2, reshaping e-commerce and trade dynamics.

Shein and Temu app icons are seen in this illustration taken August 22, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
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Parcels await processing at a post office as Hong Kong Post stops certain U.S.-bound shipments since April 27 due to new U.S. tariff rules, in Hong Kong, China, May 2, 2025. REUTERS/Tyrone Siu/File Photo

Overview

  • President Donald Trump’s executive order ends the de minimis trade exemption for goods under $800 from China and Hong Kong, effective May 2.
  • Packages shipped via USPS will face a 120% tariff or a $100 fee, rising to $200 in June, while express carriers will impose tariffs up to 145%.
  • Major platforms like Temu, Shein, eBay, and Etsy have already implemented price hikes, import charges, and operational changes in response to the new policy.
  • Temu has blocked U.S. shoppers from viewing non-local listings, while Shein and others have adjusted pricing to include tariffs in product costs.
  • The policy change marks an escalation in the U.S.–China trade war, with significant impacts on consumer prices, e-commerce logistics, and cross-border trade.