Trump ends de minimis exemption for global low-cost goods

The U.S. takes a new step in regulating low-value imports to close trade loopholes.

Trump eliminates de minimis exemption for low-cost imports

President Donald Trump signed an executive order on Wednesday that ends the de minimis trade loophole for low-value packages shipped to the United States. This change, effective on August 29, will apply tariffs to any packages valued at $800 or less, impacting imports from all countries. Previously, shipments worth less than this amount were exempt from duties, facilitating low-cost imports. This decision follows a previous move to implement the same ban on imports from China and Hong Kong. A federal trade court recently declined to intervene, despite legal challenges from a retailer claiming the ban was unlawful and would harm its business.

This executive order reflects a broader trend in U.S. trade policy aimed at increasing tariffs and enforcing stricter import regulations. By eliminating the de minimis exemption, the administration is attempting to level the playing field for domestic businesses that argue these low-cost imports undermine their competitiveness. The implications of this decision could ripple through international supply chains as companies adjust to new tariffs, potentially leading to higher prices for consumers and complicated logistics for importers. This move may also provoke reactions from trading partners, who might see it as an escalation in trade tensions.

Highlights

As international trade dynamics evolve, stakeholders should monitor the impact of these changes closely.