President Donald Trump late Wednesday ordered the U.S. government to end duty-free treatment for small-dollar shipments from China and Hong Kong, effective May 2, as a way to cut off illicit imports of synthetic opioids and level the playing field for domestic retailers. The action is expected to upend e-commerce supply chains and could hurt the air cargo industry, which moves most cross-border packages for online retailers.
Under U.S. trade law, goods valued at $800 or less shipped to a single person per day are exempt from duty and taxes. The de minimis exemption also allows low-value shipments to enjoy streamlined customs clearance, with less rigorous information requirements.
Large e-commerce platforms and logistics suppliers have been preparing new import strategies in anticipation of tighter de minimis rules following an aborted crackdown in February.
The executive order means low-value goods shipped through commercial supply chains will be subject to all duties imposed on Chinese products, including a new 34% tariff under a global reciprocal trade enforcement policy unveiled Wednesday that differs by nation. The 34% tariff stacks on top of a 20% tariff imposed on all Chinese goods earlier this year, tariffs imposed by Trump in 2018 and small, preexisting baseline tariffs.
