Former U.S. President Donald Trump has signed an executive order terminating a global tariff exemption frequently utilized by consumers of inexpensive goods.
The order, finalized Wednesday, is slated to take effect on August 29th. It broadens the scope of previous presidential actions, which initially targeted low-cost products from China and Hong Kong, to encompass the rest of the world.
The de minimis exemption, previously in place, allowed goods valued at $800 or less to enter the U.S. without incurring tariffs. American consumers commonly relied on this exemption for affordable apparel and household items purchased from online retailers such as Shein and Temu.
The White House asserts that the global exemption was being exploited to “evade tariffs and funnel deadly synthetic opioids” into the United States.
The Trump administration previously eliminated the de minimis exemption for Chinese goods on May 2nd, but the rest of the world had been exempt until this recent action.
While China accounted for the majority of shipments utilizing this exemption, Canada and Mexico also represented substantial sources of low-cost goods entering the U.S. duty-free.
Upon implementation of the new regulations, packages will be subject to the standard tariff rate applied to traditional goods originating from their country of origin.
Congress had outlined plans to end the de minimis exemption for all nations with the passage of the One Big Beautiful bill earlier this month. However, the termination of the global exemption was initially scheduled for July 2027.
Trump invoked emergency presidential powers to override the congressional timeline, significantly advancing the implementation to the end of August. The White House stated this action was taken “to address national emergencies and safeguard American lives and businesses now.”
The White House further explained that opioid smugglers were exploiting the de minimis exemption to import illicit drugs into the U.S., as these shipments were less likely to undergo rigorous customs inspections.
The administration also alleged that certain shippers were evading duties by deliberately misreporting the country of origin for goods entering the United States.
The new rule will not affect personal items valued at $200 or less that Americans bring back from international travel, nor will it impact gifts valued at $100 or less.
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