The de minimis tariff exemption that exempted imports valued at $800 or less from duties will end worldwide as of Friday. The change began when President Donald Trump signed an executive order on May 2 ending the exemption for Chinese imports, following concerns the exemption enabled tariff evasion and easier opioid imports. Many delivery companies are pausing shipments to the US amid uncertainty over compliance and enforcement. De minimis shipments account for over 90% of incoming cargo and cover items like clothing, footwear, accessories, and cosmetics. Person-to-person gifts and letters under $100 remain exempt.
In July, the White House called the de minimis exemption a "catastrophic loophole," claiming that it resulted in tariff evasion and made it easier to import opioids. The Biden administration also proposed steps to tighten the exemption, including removing some goods from its purview, but no big changes happened until Trump took office. On Friday, the de minimis exemption will end for the rest of the world, including regions where Americans often make smaller purchases, including Mexico, Canada, and Europe.
Products sold under the exemption include clothing, footwear, accessories, and cosmetics. Individual items with a value of $800 or less will be affected, but not letters or gifts that are worth less than $100 and are sent from person to person rather than from a business to a customer. From Friday, imports that would have fallen under the exemption will be subject to the same tariffs as the other products from their country of origin.
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