US Ends Trade Exemption That Enabled Flood of Cheap Chinese Goods

Contact Your Elected Officials

U.S. Customs says it processes about 4 million de minimis shipments per day, up from 2.8 million last year.

One second past midnight on May 2, the United States will end a trading policy it says has been exploited by China to flood the U.S. market with cheap goods and smuggle illicit drugs into the country.

President Donald Trump signed an executive order in April to end the de minimis exemption for goods imported from China and Hong Kong as of May 2. The White House called it โ€œa critical step in countering the ongoing health emergency posed by the illicit flow of synthetic opioids into the U.S.โ€

The de minimis exemption allows goods valued at $800 or less to enter the United States without being subject to duties and taxes.

Since 2016, shippers from China and elsewhere have imported billions of small packages to the United States under the exemption.

Starting on May 2, the United States will begin collecting a duty of either 30 percent of the value of packages at $800 or less shipped through the international postal network or $25 per item. On June 1, that rate will increase to $50 per package.

Packages valued at $800 or less shipped through means other than the international postal network will be subject to โ€œall applicable duties,โ€ a White House fact sheet states.

Macau, which, like Hong Kong, is considered by China to be a special administrative region, may be added to the list by the end of the summer over concerns that goods could be routed through Macau to circumvent duties.

Trade analysts who spoke with The Epoch Times said the closure of the de minimis exemption to China and Hong Kong will deal a significant blow to online retailers who sell goods through websites such as Amazon but will be especially detrimental to made-in-China retail and fast-fashion giants Shein and Temu.

De Minimis Imports

Since 1938, under Section 321 of the Tariff Act of 1930, the United States has allowed small packages of trivial financial value to be imported into the country duty-free. The original intent of this legislation, Christopher Casey wrote in a January article for the Congressional Research Service, was to avoid wasting government resources to collect an insignificant amount of revenue.

Byย Austin Alonzo

Read Full Article on TheEpochTimes.com

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

250 Countdown

Those 56 intrepid men who signed put their very lives, honor and fortunes on the line. There was no auto-quill to accommodate their signatures.ย 

How the Senate Parliamentarian Changed the OBBB

An unelected bureaucrat does a important job in the U.S. Senate. Elizabeth MacDonough enforces senate rules on Trumpโ€™s โ€œOne Big Beautiful Billโ€.

Bioterror Roundup: CDC Director Nominee Is a Monster + New mRNA Pregnancy Studies

Bioterror Propaganda Roundup: The latest updates on the โ€œnew...

The Sacred Honor of the 56

Today we're celebrating the sacred honor of the 56 men who signed the Declaration of Independence.

Alligator Alcatraz: A Bold Step Toward Secure Borders

Alligator Alcatraz funded through FEMA, represents a decisive move by the Trump admin to address illegal immigration with efficiency and resolve.

New White House Faith Office Aims to Ensure US Is Beacon of Freedom for Others

The White House Faith Office wants to see the United States as the leader in advancing religious freedom, its faith director Jennifer Korn said.

Federal Reserve Rates Are Too High, Says Former World Bank Chief

Rates should be between 0.25 and 1.75 percent rather...

Newly Naturalized Citizens Say What American Freedom Means to Them

Nearly 820,000 people pledged allegiance to the United States and became naturalized citizens in 2024.

Noem Waives Environmental Restrictions to Fast-Track Water Barriers in Rio Grande

DHS Sec Kristi Noem waived federal environmental laws to fast-track construction of 17 miles of waterborne barriers in the Rio Grande in South Texas.

Trump Indicates Legislation for Hiring Illegal Aliens on Farms

Trump to allow illegal immigrants who work on farms to continue working to prevent unnecessary disruptions to farming across the country.

US Keeps Pressure on Chinese Goods Amid Vietnam Trade Deal

Transshippingโ€”rerouting goods through a third country to disguise the origin of the productsโ€”is a focal point of trade negotiations with Asian markets.

White House Report Reveals Top Earners, Staffers Working for No Salary

The Trump admin released its yearly report that shows the salaries for White House staffers, also revealing officials who arenโ€™t accepting salaries at all.

Transportation Secretary Urges Governors to Remove Political Messages From Crosswalks, Intersections

Duffy sent letters to governors, mayor of D.C., and gov of Puerto Rico urging them to remove political messaging from intersections and crosswalks.
spot_img

Related Articles