US ends duty-free import exemption for China, hitting low-value e-commerce shipments
WASHINGTON — The United States on Friday officially revoked the de minimis exemption for low-value imports from China and Hong Kong, ending a long-standing trade provision that allowed shipments under $800 to enter the country duty-free.
The move, enacted through an executive order signed by President Donald Trump on April 2, marks a significant escalation in the US-China trade dispute.
The White House said the decision aims to curb the flow of synthetic opioids like fentanyl and to close what Trump described as a 'scam' that disadvantages American small businesses.
'It's a big scam going on against our country, against really small businesses. And we've ended, we put an end to it,' Trump said during a Cabinet meeting earlier this week.
The end of the exemption will subject all qualifying imports from China and Hong Kong to standard duties and tariffs — with some goods potentially facing rates as high as 145%.
The measure is expected to particularly impact e-commerce platforms such as Shein, Temu, and third-party Amazon sellers, which relied heavily on the exemption to avoid duties on bulk low-value shipments.Trade analysts say the decision will significantly increase the workload for U.S. Customs and Border Protection (CBP), which will now be required to inspect millions more small packages each day, potentially leading to delays and logistical strain.'The way we shop online will never be the same,' said Ram Ben Tzion, CEO of logistics platform Publican, in comments to CBS News.Section 321 of the Tariff Act of 1930 previously allowed duty-free entry for shipments below a de minimis threshold, which Congress raised from $200 to $800 in 2016. According to a Congressional Research Service report, Chinese exports of such low-value parcels soared from $5.3 billion in 2018 to $66 billion in 2023. — Agencies
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