Chicago – April 07, 2025
While President Donald Trump was levying massive tariffs on goods from around the world this week, he also moved to pinch off a popular trade loophole that allows American shoppers to buy low-cost goods directly from retailers in China and Hong Kong.
Popular e-commerce companies, including giants Shein and Temu, use the so-called “de minimis” exemption to ship tens of millions of packages — everything from end tables and lamps to shoes and underwear — to U.S. consumers every year.
So long as each individual package is worth $800 or less, they aren’t required to pay import fees or go through typical customs inspections. But under an executive order signed by Trump Wednesday, that loophole will close on May 2.
These lower-value shipments will now face a tariff of 30% of the “value of the postal item containing goods for merchandise” with a minimum fee that will eventually rise to $50.
