President Trump has ordered the closure of the de minimis exemption, which allowed tariff-free entry for goods from China valued under $800. This change, effective May 2, aims to boost tariff revenue and combat drug smuggling, particularly related to fentanyl. Lawmakers from both parties have expressed support for reform, with some arguing that the order does not go far enough to address broader trade issues and may not stop smugglers from relocating operations to other countries. Critics warn that the loophole has overwhelmed the U.S. market with cheap goods while facilitating drug trafficking.
By ending the de minimis exemption for packages from China, tariff revenues will now be collected on shipments worth less than $800, addressing illegal trade.
Lawmakers from both parties are calling for reforms to the de minimis provision, indicating that simply closing the loophole for China may not be sufficient.
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