President Trump signed an executive order closing a loophole known as the 'de minimus' exception, which had allowed low-cost goods from China and Hong Kong to enter the U.S. duty-free. This change aims to combat illicit activities and the synthetic opioid crisis tied to such goods. Effective May 2, shipments valued under $800 will incur a 30% tariff or $25 per item, increasing to $50 on June 1. The order also requires carriers to secure payment for these duties, asserting enhanced revenue collection capabilities by the Commerce Department.
"These shippers often avoid detection due to administration of the de minimis exemption," Trump wrote, claiming that duty-free exports from China "play a significant role in the synthetic opioid crisis in the United States."
The new tariffs on de minimus goods will be imposed "in lieu of any other duties that the shipments would otherwise be subject to," such as Trump's 20% levy on Chinese imports.
Starting May 2, shipments under $800 will be subject to an ad valorem duty of 30% of the value of the postal item or $25 per postal item.
In February, Trump briefly suspended the loophole before restoring the exemption to give the Commerce Department more time to develop a plan for how to collect the new revenues.
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