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3w ago

U

President Trump's executive order eliminates the de minimis exemption for low-value imports, introducing new tariffs and fees starting May 2, with further increases planned in June.

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Overview

  • The de minimis exemption, which allowed imports under $800 from China and Hong Kong to bypass tariffs, will officially end on May 2, 2025.
  • New tariffs impose either a 30% tax or a flat fee of $25 per item, increasing to $50 after June 1, 2025, significantly raising costs for consumers and businesses reliant on low-cost imports.
  • The policy aims to address concerns over drug trafficking, particularly synthetic opioids like fentanyl, which officials say exploit the de minimis rule to bypass customs scrutiny.
  • Chinese e-commerce giants like Shein and Temu, which heavily depend on the exemption to offer low-cost goods, face significant operational challenges and potential price increases for U.S. consumers.
  • While the rule change currently applies only to imports from China and Hong Kong, the White House is considering expanding it to other countries once tariff collection systems are established.