Amidst the tough news of President Trump’s announced reciprocal tariffs comes at least a sliver of positive news: The Administration signed an Executive Order that effectively closes the loop on the de minimis exemption. The ACMA and other organizations played a crucial role in getting what had been an unfair competitive advantage eliminated.

The de minimis loophole was a provision in U.S. trade law that allowed packages with contents under $800 to enter the U.S. duty free under a simplified procedure that avoided tariffs and bypassed bans on imported goods made with forced labor. Cheap goods from Chinese merchants like Temu and Shein were popular among American consumers.

The Order, which takes effect on May 2nd, is intended to target shipping practices by Chinese shippers that exploit the de minimis exemption to send illicit substances, including synthetic opioids, to the United States, but it has the potential to massively disrupt international commerce and companies in the U.S. who source inputs from China utilizing the de minimis threshold.
Now, USPS-shipped items valued at or under $800 will face a duty rate of either 30% of their value or $25 per item, increasing to $50 after June 1st.

