New US tariffs are now hitting cheap imports from China
New US tariffs are now hitting cheap imports from China
New tariffs have taken effect on cheap imports from China, affecting businesses that relied on the de minimis exception.
The de minimis exception, which allowed packages valued under $800 to enter the US duty-free, has expired as of 12:01AM ET today.
Businesses like Shein and Temu have raised prices to account for tariffs, with retailers passing on the increased costs to consumers.
The new rules impose either a 30% fee or $25 (with an increase to $50 starting June 1st) on every package shipped to the US, chosen by each postal carrier.
The de minimis exception, which has allowed businesses to import low-value goods without duties from China and Hong Kong, has expired as of 12:01AM ET today as part of President Trump’s executive order signed last month.
Many businesses in the US rely on the de minimis loophole. Any package valued under $800 — including electronics, toys, and clothing from companies like Shein — can come to the US duty-free under the exception, leaving the products supercheap for buyers. In 2024, about 1.4 billion packages entering the US claimed exemption from duties under de minimis. Retailers Shein and Temu have already raised prices to account for tariffs.
The Trump Administration’s new rules will add either a 30 percent fee to the value of every package shipped to the US, or $25 (with an increase to $50 starting June 1st) — a choice every postal carrier must make and apply to all parcels. The new fees are being implemented after Trump hit most Chinese goods with high tariffs last month, launching an escalating trade war that ended with a 145 percent import tax increase. In retaliation, China has added a 125 percent fee on US goods.
A. The de minimis exception allows businesses to import low-value goods without duties from China and Hong Kong, with a package value under $800 being duty-free.
Q. Why has the de minimis exception expired?
A. The de minimis exception has expired as part of President Trump’s executive order signed last month.
Q. Which companies have raised prices due to tariffs?
A. Retailers Shein and Temu have already raised prices to account for tariffs.
Q. What is the new fee structure imposed by the US government?
A. The new fees are either a 30 percent fee on the value of every package shipped to the US, or $25 (with an increase to $50 starting June 1st).
Q. Why were the new fees implemented?
A. The new fees were implemented after Trump hit most Chinese goods with high tariffs last month.
Q. What is the current trade war situation between the US and China?
A. The US has imposed a 145 percent import tax increase on Chinese goods, while China has added a 125 percent fee on US goods in retaliation.
Q. How many packages claimed exemption from duties under de minimis in 2024?
A. About 1.4 billion packages entering the US claimed exemption from duties under de minimis in 2024.
Q. What is the impact of the new fees on postal carriers?
A. Every postal carrier must choose between a 30 percent fee or $25 (with an increase to $50 starting June 1st) for every package shipped to the US.
Q. Why did President Trump sign the executive order last month?
A. The text does not explicitly state why President Trump signed the executive order, but it implies that he wanted to impose new tariffs on Chinese goods.
Q. What is the value of the de minimis exception in terms of the impact on buyers?
A. The products are supercheap for buyers due to the duty-free status under the de minimis exception.
