On May 2, 2025, President Donald Trump officially ended the “de minimis” tariff exemption for low-value imports from China and Hong Kong. This exemption had previously allowed packages valued under $800 to enter the U.S. without import duties, benefiting e-commerce platforms like Temu and Shein.
Key Points:
Tariff Implementation: Shipments from China and Hong Kong are now subject to tariffs of up to 145% or flat fees, depending on the shipping method. These rates are set to increase further in June.
Impact on E-commerce: Companies like Temu have ceased direct shipments from China to U.S. consumers, shifting to domestic fulfillment centers.
Consumer Effects: U.S. consumers may experience higher prices and longer delivery times for products previously imported duty-free.
Policy Justification: The Trump administration cites the move as a measure to protect U.S. small businesses and curb the influx of synthetic opioids through small packages.
This policy change marks a significant shift in U.S. trade relations with China, with potential ripple effects across global supply chains and consumer markets.
