The recent executive order signed by President Trump, which takes effect on May 2, 2025, eliminates the $800 de minimis duty-free allowance for goods imported from China and Hong Kong. This change targets low-cost retailers like Temu and Shein, who have thrived under the provision, allowing them to offer cheaper goods in the U.S. With the new duties expected to raise prices significantly, consumers may see costs for items like T-shirts jump from $10 to $24.50. This will impact the e-commerce landscape significantly as duties rise up to 145%.
U.S. Customs and Border Protection Agency data shows that the U.S. processed over 1.3 billion de minimis shipments in 2024, up from 139 million a decade ago.
The executive order signed by President Trump eliminates the duty-free threshold of $800 on goods from China and Hong Kong, implementing a 30% duty starting May 2, 2025.
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