In a decisive move to tighten trade regulations, former U.S. President Donald Trump signed an executive order effectively closing the “de minimis” loophole, which previously allowed low-value shipments from China and Hong Kong to enter the U.S. without duties. The order, which takes effect on May 2 at 12:01 a.m. Eastern Time, was announced during a White House Rose Garden event where Trump also introduced sweeping new tariffs on international trade partners.
According to the White House, the change comes after Commerce Secretary Howard Lutnick confirmed the readiness of tariff collection systems to enforce duties on these shipments. The new regulations mandate that goods imported from China and Hong Kong, valued at or below $800, will now be subject to all applicable tariffs. Additionally, shipments routed through the postal network will incur a duty rate of either 30% of their value or a fixed charge of $25 per item. This rate is set to increase to $50 per item starting June 1.
This executive order follows a previous attempt on February 1 to end the duty-free policy, which was temporarily paused due to logistical challenges in inspecting the influx of millions of small packages. Reports indicate that nearly 1.4 billion packages entered the U.S. through the duty-free route last year, highlighting the significant volume of such shipments.
Trump had long vowed to curb China’s influence in trade, citing concerns over the synthetic opioid crisis, which has contributed to over 450,000 American fatalities in the past decade. The temporary halt on the de minimis rule enforcement earlier in February led to massive cargo accumulation at entry ports, prompting further regulatory adjustments.
To comply with the new directive, carriers handling postal shipments from China and Hong Kong are now required to disclose shipping details to U.S. Customs and Border Protection (CBP), secure an international carrier bond to ensure tariff payment, and adhere to a structured payment schedule for duties.
For more insights into trade regulations, visit U.S. Customs and Border Protection or refer to related updates on Reuters.
For more news on U.S. trade policies, visit our Trade & Economy section.
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