President Donald Trump signed an executive order on Wednesday to close a trade loophole that allowed cheap packages from China and Hong Kong to enter the U.S. without paying duties.
The change ends the de minimis exemption for shipments worth $800 or less, starting May 2 at 12:01 a.m. Eastern. This move could have a major impact on online retailers like Shein and Temu, which rely on sending goods directly to U.S. shoppers without paying tariffs.
For shipments not sent through the international postal system, these goods will now be hit with regular duties. If they are sent through the postal system, they’ll face a flat fee of either 30% of the item’s value or $25 per item, whichever is more. That fee will go up to $50 after June 1.
Trump first signed an order to end the exemption on February 1 but paused it a week later due to logistical issues. “They figured it out,” a source familiar with the decision said. “De minimis is being stripped from China.”
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