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Trump ends small package tariff exemption while waiving customs rules

2 0
02.05.2025

The White House closed the so-called de minimis tariff loophole for lower-value Chinese imports Friday but also waived a customs rule that will make collecting those tariffs very difficult, trade experts say.

As part of its ongoing trade war, which is focused now particularly on China, the Trump administration formally ended the small-package exemption that requires import levies on goods from China worth $800 or less.

That exemption was worth a fortune to online retailers like Temu, Shein and Amazon, as well as package shippers that import goods from China for U.S. consumers at large scale.

“Duty-free de minimis treatment … shall no longer be available for products of the [People’s Republic of China] ... on or after 12:01 am [EDT] on May 2, 2025,” the White House ordered on April 2.

President Trump called the exemption a “scam” during a Cabinet meeting this week in which he acknowledged that tariffs could push up prices, as many economists have been arguing, and potentially even lead to shortages of goods.

“De minimis — it’s very, it's a big deal. It's a big scam going on against our country, against really small businesses and we've ended it. We put an end to it,” Trump said on Wednesday.

Economists said Friday that the tariff could be visible to U.S. consumers.

“The tax is unlikely to show up in consumer price data … but it is a visible price increase to many........

© The Hill