Trump Ends Duty-Free Treatment for Low-Value Shipments from China

U.S. President Donald Trump has signed an executive order that eliminates a trade loophole known as "de minimis," which has allowed low-value packages from China and Hong Kong to enter the United States duty-free, Andrea Shalal, Kanishka Singh, and Ryan Jones reported for Reuters.

Over 90% of these packages enter the U.S. under de minimis rules, with about 60% originating from China—led by direct-to-consumer retailers such as Temu and Shein. I Photo: Danielll10 Wikimedia Commons

Trump signed the order—set to take effect at 12:01 a.m. Eastern Time on May 2—in the Rose Garden of the White House.

The move, first reported by Reuters, followed Commerce Secretary Howard Lutnick’s certification that "adequate systems are in place to collect tariff revenue" on these shipments.

The order stipulates that imported goods from China and Hong Kong, valued at or under $800 and shipped outside the international postal network, will now be subject to all applicable duties.

For goods sent through the postal network and valued at or under $800, a new duty of either 30% of the item’s value or $25 per item will be applied.

This rate will increase to $50 per item starting June 1. Trump had previously signed an order on February 1 to end duty-free entry for low-value Chinese goods, but he later paused the move due to logistical challenges in inspecting the millions of shipments involved.

“They figured it out,” said a source familiar with the decision. “De minimis is being stripped from China.”

The number of shipments entering the U.S. through the duty-free channel has surged in recent years, reaching nearly 1.4 billion packages in 2024. Over 90% of these packages enter the U.S. under de minimis rules, with about 60% originating from China—led by direct-to-consumer retailers such as Temu and Shein.