Trump Ends De Minimis Exemption for Low-Cost Global Shipments
President Donald Trump has moved to suspend the de minimis exemption, a policy that previously allowed low-value international shipments to enter the U.S. without duty fees. Starting August 29, all commercial shipments valued at $800 or below will be subject to tariffs unless sent through the international postal network.
The White House stated that these shipments will face either an ad valorem duty based on the country of origin’s tariff rate under the International Emergency Economic Powers Act or a temporary fixed duty ranging from $80 to $200 per item. The fixed duty option will only last for six months, after which all shipments will be charged the ad valorem rate. The administration argues that the de minimis exemption has hurt U.S. businesses and facilitated the illegal import of synthetic opioids like fentanyl.
This follows an earlier decision in May to suspend the exemption for shipments from China and Hong Kong, where many budget-friendly e-commerce platforms, including Shein, Temu, and Amazon’s Haul, operate. The move is expected to impact consumers who frequently purchase low-cost goods from international sellers.
The change aims to tighten trade controls and protect domestic industries, though it may lead to higher costs for small-value imports. Critics argue it could disrupt global e-commerce, while supporters believe it will curb illicit trade and support American businesses.
