Topline
President Donald Trump signed an executive order ending the “de minimis” trade exemption from tariffs—a loophole that previously allowed companies like Temu and Shein to ship goods to the United States without paying import duties if they were valued at or under $800.
Trump signed an executive order ending the exemption on Wednesday.
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Key Facts
Packages shipped to the United States valued under $800 will now be subject to “all applicable dues,” the Trump administration said Wednesday.
In recent years low-cost retailers like Temu and Shein have taken advantage of the de minimis exemption to ship cheap goods directly to American customers without facing levies, but the Trump administration has taken steps to close this loophole—suspending it for goods shipped from China and Hong Kong in April.
The executive order is scheduled to go into effect on Aug. 29, the Trump administration said.
The executive order comes two days after the federal Court of International Trade declined to reinstate the de minimis exemption for Chinese and Hong Kong imports—but a separate legal challenge is still up for appeal in federal court.
Why Did Trump Target This Exemption?
The Trump administration claimed the loophole posed “health, safety, national and economic security risks,” specifically noting that producers of fentanyl and other synthetic opioids shipped to the U.S. in these packages. It’s not the first time the government has scrutinized what has been a rapid increase in de minimis shipments in recent years. The Biden administration also proposed steps to crack down on illegal shipments in de minimis packages, also citing the alleged proliferation of fentanyl through these shipments.
Big Number
4 million. That’s about how many packages valued within the de minimis limit that are processed in the United States every day, according to Customs and Border Patrol, accounting for 92% of all cargo arriving in the country. This number is up from an average of 2.8 million per day in 2024, according to the agency.
Key Background
The de minimis exemption was signed into law as part of the Tariff Act of 1930. The bill initially set the upper limit at $200, but Congress raised the limit to $800 in 2016. Trump’s “Big Beautiful Bill,” his landmark spending package passed earlier this month, includes a repeal of the de minimis statute, which will take effect in 2027.
Source: https://www.forbes.com/sites/zacharyfolk/2025/07/30/trump-suspends-de-minimis-tariff-exemption-for-goods-under-800/