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President Donald Trump signed an executive order on Wednesday ending the de minimis tariff exemption loophole, which will make it more expensive for Americans to ship low-cost items from overseas.
Beginning August 29, any shipment of imported goods valued at less than $800 will be subject to duties based on the product’s country of origin and the specific item.
It’s part of Trump’s efforts to increase domestic manufacturing, making the United States less reliant on other countries. The president has vowed to balance trade deficits with other countries, believing they unfairly harm the U.S.
Over the last 10 years, the number of low-value packages entering the U.S. has surged more than 600 percent, according to Customs and Border Patrol. In 2015, there were approximately 139 million, but in 2024 shipments rose to more than 1.36 billion.
The White House called the de minimis a “catastrophic loophole,” saying it has been used to “evade tariffs and funnel deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses” into the U.S.
Trump had already suspended the exemption for Hong Kong and China, impacting popular cheap retailers such as Temu and Shein.
The de minimis provision was added several years after the passage of the Tariff Act of 1930. It was intended to make trade easier by eliminating administrative hurdles, such as collecting minimal duties. It has been particularly effective with the rise of e-commerce.
However, in recent years, cheap e-commerce retailers overseas have been accused of over-utilizing the loophole, increasing the number of packages coming into the U.S., and making it difficult for Customs and Border Patrol to examine and protect Americans from unsafe shipments.
Last year, the Biden administration also sought to decrease the number of low-cost packages coming into the U.S. by adding restrictions and regulations to retailers that claim the de minimis exemption.
However, Trump’s executive order is a much harsher attempt to curb the number of low-cost packages.
While the current repeal falls under an executive order, it will become permanent on July 1, 2027, as part of the One Big Beautiful Bill Act.
The White House said American travelers will still be permitted to bring back $200 worth of personal items, and individuals can continue receiving bona fide gifts valued at $100 or less duty-free.
In addition to the executive order on Wednesday, Trump also signed an order implementing a 50 percent tariff on imported copper, slapped a 25 percent tariff on India for purchasing Russian oil, and a 40 percent tariff on Brazil.
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