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HomeInternational NewsTrump signs order to end duty-free treatment for cheap shipments from China

Trump signs order to end duty-free treatment for cheap shipments from China

Trump signs order to end duty-free treatment for cheap shipments from China

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U.S. President Donald Trump signed an executive order on Wednesday that closes a trade loophole used to allow duty-free low-value package shipments from China, known as “de minimis.” The order, which takes effect on May 2, aims to combat the illegal flow of synthetic opioids into the United States.

The executive order, announced in a White House briefing, states that President Trump is ending duty-free treatment for covered goods imported from China and Hong Kong. The change will affect packages valued at $800 or less that previously qualified for the de minimis exemption.

Effective May 2, 2025, at 12:01 a.m. EDT, imported goods valued at $800 or less that are shipped through methods other than the International Postal System will be subject to all applicable tariffs. Mail items containing goods valued at $800 or less and shipped through the International Postal System will be subject to a tariff rate of 30% of their value, or $25 per item, whichever is greater, increasing to $50 per item after June 1, 2025.

Carriers transporting these postal items must report shipment details to U.S. Customs and Border Protection (CBP), maintain an international carrier bond to ensure payment of duties, and remit duties to CBP on a scheduled basis. CBP may require a formal entry for any postal package in lieu of specific duties.

This action is part of the administration’s ongoing efforts to address the opioid crisis. The Chinese Communist Party (CCP) has been criticized for subsidizing and encouraging PRC chemical companies to export fentanyl and related precursor chemicals, which are used to manufacture synthetic opioids that are illegally sold in the United States. According to CBP, in the last fiscal year, more than 21,000 pounds of fentanyl were seized at the border, enough to kill more than 4 billion people.

The executive order follows a February 7 announcement by the Trump administration to delay the rescission of duty-free treatment for low-cost packages from China, citing disruptions caused by the rapid change. The delay gave the Commerce Department time to implement the order and minimize the impact on customs inspectors, postal services and online retailers.

The change is expected to add time and cost to the entry process for more than $1 billion in small-value e-commerce packages that arrive in the United States from China annually. Companies like Shine and Temu, which ship about 9,000 metric tons of goods worldwide each day, have been hit by disruptions caused by the initial change.

The Trump administration has said the order is part of a broader strategy to seal the border and stop the flow of deadly drugs, a promise he made during his campaign. The order is expected to have significant impacts on the e-commerce industry and U.S. consumers, as it could lead to higher costs for imported goods.

Finally, the executive order signed by President Trump marks a significant shift in U.S. trade policy aimed at combating the opioid crisis. The impact of the order on the e-commerce industry and U.S. consumers remains to be seen as the administration works to implement the changes and assess their effectiveness.

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