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20h ago

U.S. Ends Duty-Free Imports from China, Imposing High Tariffs

The closure of the de minimis exemption marks a pivotal shift in trade policy, triggering tariffs of up to 145% on Chinese shipments and reshaping e-commerce dynamics.

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Shein and Temu app icons are seen in this illustration taken August 22, 2024. REUTERS/Dado Ruvic/Illustration/File Photo

Overview

  • The de minimis exemption, which allowed duty-free imports under $800, officially ended on May 2, 2025, impacting millions of low-value shipments from China and Hong Kong.
  • Shipments via express carriers now face tariffs of 145%, while postal packages incur a 120% tax or a $100 flat fee, set to increase to $200 in June.
  • E-commerce giants Shein and Temu have raised prices, with some smaller retailers halting U.S. sales due to the prohibitive costs and administrative burdens.
  • U.S. Customs and Border Protection has implemented enhanced screening systems to enforce the new tariffs, citing readiness for the increased workload.
  • The policy shift is part of a broader strategy to counter unfair competition and curb the entry of counterfeit goods and illicit substances such as fentanyl precursors.