Trump removes tax exemption for low-value Chinese goods

Photo credit: Nikkei Asia

President Donald Trump signed an executive order on Wednesday terminating the duty-free de minimis exemption for low-value imports from China, effective May 2.

The measure ends the practice that allowed duty-free entry for goods valued under $800, primarily benefiting Chinese shopping apps.

The White House released a statement confirming the decision, emphasizing the need to close loopholes in the tariff system to protect American economic interests.

U.S. retailers and consumers previously enjoyed tax-free access to low-cost fashion, electronics, and other goods through this provision.

The elimination of this exemption is expected to impact Chinese e-commerce platforms like Shein and Temu, which relied heavily on the de minimis provision to market inexpensive products in the United States.

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