The U.S. is closing a long-standing trade loophole that once allowed millions of parcels from China to enter the country duty-free.
From 2 May 2025, the de minimis threshold—which exempts imports under $800 from duties and taxes—will no longer apply to shipments from China or Hong Kong. Instead, these low-value goods will be subject to a 120% duty and a $100 postal processing fee, which will double to $200 per parcel starting 1 June.
This move is part of President Trump’s broader campaign to clamp down on Chinese imports and reduce what he describes as “unfair trade advantages.” The de minimis change ensures that Chinese e-commerce platforms and exporters can no longer flood the U.S. with low-cost, untaxed goods that bypass traditional customs enforcement.
A Policy Reversal Made Permanent
The shift in de minimis treatment began with a surprise announcement on 1 February, when the administration declared its intention to eliminate the exemption for China. Enforcement began just three days later on 4 February, but was quickly halted on 5 February due to significant postal delays, customs congestion, and backlash from logistics providers.
However, with new executive orders issued on 8 and 9 April, the administration reasserted its commitment to ending de minimis benefits for Chinese-origin goods—and raised the penalties significantly. In addition to duties, the postal fees were revised upward from earlier plans that would have introduced a 30% tariff and $25–$50 fees.
Scope and Enforcement
This new regime will apply to all low-value imports from China and Hong Kong, regardless of how they enter the country:
Postal shipments
Courier services (e.g. DHL, FedEx, UPS)
Commercial freight and air cargo
There is no exemption for personal use, gifts, or business samples.
Key Dates:
1 Feb: Trump administration announces the end of de minimis for China.
4 Feb: Initial implementation disrupts logistics; USPS halts some parcel processing.
5 Feb: Temporary reversal issued.
8 Apr: New executive order reinstates policy; sets 90% duty rate and introduces postal fee.
9 Apr: Duty rate raised to 120%; postal fee increased to $100 (effective 2 May).
2 May: Final implementation begins.
1 June: Postal fee increases to $200 per parcel.
What’s Next?
While the changes currently target China and Hong Kong, the White House and key lawmakers have signalled they are considering broader reforms to the de minimis framework. That could mean a future extension to other high-volume exporters—including Mexico, Vietnam, and India.
If you’d like to understand how these tariff and de minimis changes could affect your supply chain, assess your exposure, or explore strategic alternatives, we’re here to help. With a strong U.S. presence and deep expertise in North American trade flows, Global Forwarding is well-positioned to support you.
Make informed, compliant, and cost-effective decisions with guidance from our trade and customs experts. EMAIL Marta or EMAIL Fernando in New Jersey today to start the conversation.
