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Trump ends global tariff exemption for low-cost goods

The U.S. has ended the de minimis exemption that previously allowed low-value goods to enter tariff-free.

July 30, 2025 at 09:47 PM

Trump order ends global tariff exemption for low-cost goods

The U.S. government has removed the de minimis exemption that allowed low-cost goods to enter tariff-free.

Trump ends global tariff exemption for low-cost goods

The U.S. administration has ended the de minimis exemption for all countries, a move previously limited to Chinese goods. This exemption allowed low-cost goods valued at $800 or less to enter the U.S. without paying tariffs. With the new rules, these packages will now be subject to the same tariff rates as traditional goods. Originally, Congress intended to phase out this exemption globally by July 2027. However, President Trump used emergency powers to advance this timeline, citing national security concerns related to drug smuggling and inaccurate reporting on the country of origin.

Key Takeaways

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End of tariff-free entry for low-cost goods impacts many countries

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Previous exemption primarily benefitted China, but Canada and Mexico also significant

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Emergency presidential powers were used to accelerate the timeline

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National security was cited as a justification for the decision

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The new rules place additional financial burdens on consumers and businesses

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The change might increase scrutiny of shipments entering the U.S.

"The White House said opioid smugglers were using the de minimis exemption to send illicit drugs into the US."

This statement outlines the government's rationale for changing the exemption rules.

"This was done to deal with national emergencies and save American lives and businesses now."

The White House explains the urgency behind the tariff changes, linking it to national security.

This action significantly alters the landscape for international trade, especially for businesses relying on low-cost imports. While the government cites concerns over drug trafficking as a motivation, the broader implications may pressure many small businesses that benefited from previous exemptions. By tightening these regulations, the administration has positioned itself to both address perceived security threats and reshape economic practices regarding imports. This rule changes the shipping dynamics for many small suppliers and individual consumers, raising questions about the long-term impact on prices and supply chains.