“De minimis” exemptions: What Trump Tariffs have done to Chinese shopping websites is similar to what India did to them in 2020

The Trump administration has terminated duty-free access for low-value shipments from China and Hong Kong, effective May 2, 2025, eliminating the “de minimis” exemption under Section 321 of the Tariff Act of 1930. This loophole, previously used by e-commerce giants like Shein and Temu, as well as traffickers of illicit goods like fentanyl, allowed packages valued up to $800 to enter the U.S. duty-free, enabling foreign retailers to offer lower prices than U.S. competitors.

Originally enacted in 1938 to reduce administrative costs for negligible duties, the exemption has now been closed, increasing costs for imported goods.