US President Donald Trump signed an executive order ending duty-free de minimis treatment for low-value imports from China and Hong Kong. The decision, effective from May 2, 2025, is aimed at curbing the illegal flow of synthetic opioids, particularly fentanyl, into the country.
Under the new rules, all goods imported outside the international postal network and valued at or under $800, which previously qualified for duty-free status, will now be subjected to full tariffs and duties.
Additionally, packages sent through the international postal system will face a 30 per cent duty or a minimum $25 charge per item, increasing to $50 per item after June 1, 2025.
What is the De Minimis rule?
The de minimis rule was a trade provision that allowed low-value imports, those under $800, to enter the US without paying customs duties or tariffs. This exemption was originally designed to reduce red tape and facilitate trade by enabling quick, low-cost shipping for small businesses and consumers.
However, critics have long argued that the rule created a loophole for foreign sellers, particularly in China, allowing them to bypass tariffs and flood the market with cheap goods, including counterfeit products and illicit substances. Unlike the US, China enforced strict import controls and did not offer the same trade leniency to American businesses.
Why is Trump shutting it off?
During his 2024 election campaign, Trump had promised “We will not rest until we have ended the drug addiction crisis.”
The decision to eliminate duty-free privileges for Chinese imports is part of Trump’s broader effort to curb the fentanyl crisis in the US authorities say that many Chinese chemical companies use the de minimis loophole to disguise and ship synthetic opioids through deceptive packaging and fraudulent invoices.
The move follows alarming statistics from US customs and border protection (CBP), which processes more than 4 million de minimis shipments daily. Last year alone, CBP seized over 21,000 pounds of fentanyl, but officials believe this represented only a fraction of what actually enters the country. With fentanyl-related deaths surpassing 75,000 per year, the crisis has become one of the deadliest public health emergencies in US history.
What happens next?
With the new rules in place, all international carriers will be required to report shipments, maintain customs bonds, and remit duties on a scheduled basis. The secretary of commerce will also review the policy’s impact and assess whether similar restrictions should be imposed on imports from Macau.
This latest action reinforced Trump’s stance on China and trade, following his previous decision to increase tariffs by 20 per cent on Chinese goods. Supporters believe these measures will protect American manufacturers and shut down illicit trade routes, while critics argue it could raise costs for businesses and consumers.
Under the new rules, all goods imported outside the international postal network and valued at or under $800, which previously qualified for duty-free status, will now be subjected to full tariffs and duties.
Additionally, packages sent through the international postal system will face a 30 per cent duty or a minimum $25 charge per item, increasing to $50 per item after June 1, 2025.
What is the De Minimis rule?
The de minimis rule was a trade provision that allowed low-value imports, those under $800, to enter the US without paying customs duties or tariffs. This exemption was originally designed to reduce red tape and facilitate trade by enabling quick, low-cost shipping for small businesses and consumers.
However, critics have long argued that the rule created a loophole for foreign sellers, particularly in China, allowing them to bypass tariffs and flood the market with cheap goods, including counterfeit products and illicit substances. Unlike the US, China enforced strict import controls and did not offer the same trade leniency to American businesses.
Why is Trump shutting it off?
During his 2024 election campaign, Trump had promised “We will not rest until we have ended the drug addiction crisis.”
The decision to eliminate duty-free privileges for Chinese imports is part of Trump’s broader effort to curb the fentanyl crisis in the US authorities say that many Chinese chemical companies use the de minimis loophole to disguise and ship synthetic opioids through deceptive packaging and fraudulent invoices.
The move follows alarming statistics from US customs and border protection (CBP), which processes more than 4 million de minimis shipments daily. Last year alone, CBP seized over 21,000 pounds of fentanyl, but officials believe this represented only a fraction of what actually enters the country. With fentanyl-related deaths surpassing 75,000 per year, the crisis has become one of the deadliest public health emergencies in US history.
What happens next?
With the new rules in place, all international carriers will be required to report shipments, maintain customs bonds, and remit duties on a scheduled basis. The secretary of commerce will also review the policy’s impact and assess whether similar restrictions should be imposed on imports from Macau.
This latest action reinforced Trump’s stance on China and trade, following his previous decision to increase tariffs by 20 per cent on Chinese goods. Supporters believe these measures will protect American manufacturers and shut down illicit trade routes, while critics argue it could raise costs for businesses and consumers.
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