Key Takeaways:
- Trump Ends $800 Duty-Free Loophole: An executive order signed by President Trump will end the de minimis exemption for imports under $800, effective August 29. Low-value goods entering the U.S. will now face full customs duties.
- Shein and Temu in the Crosshairs: Chinese fast-fashion retailers Shein and Temu—responsible for over 30% of daily de minimis shipments—will be hit hardest, potentially raising prices for U.S. consumers.
- U.S. Reclaims Economic Ground: The loophole allowed Chinese e-commerce to bypass tariffs and undercut American businesses. Trump’s move levels the playing field and sends a clear message: America’s market is not for manipulation.
President Trump just slammed the door on a decades-old trade loophole that let foreign companies ship cheap goods into the U.S. duty-free—hurting American manufacturers and rewarding bad actors like China. On July 30, Trump signed an executive order ending the de minimis exemption for low-value goods. Starting August 29, packages under $800 will no longer skate through U.S. customs without paying “all applicable duties,” the White House confirmed.
This change hits companies like Shein and Temu hardest—two Chinese e-commerce giants flooding American doorsteps with ultra-cheap clothing, furniture, and more. According to Reuters, over 30% of all de minimis shipments come from just those two companies.
For years, China exploited a 1930s-era trade rule designed for small, occasional imports—not for mass-volume operations built to dodge U.S. tariffs. From 2018 to 2023, Chinese low-value shipments ballooned from $5.3 billion to $66 billion.
Sen. Jim Banks (R-IN) applauded the move: “For too long, countries like China have flooded our markets with duty-free, cheap imports.”
Yes, prices may rise—but that’s the cost of economic sovereignty. America shouldn’t be subsidizing Beijing’s supply chain while our own manufacturers get buried. Trump’s move sends a loud message: the U.S. market is open for business—not for exploitation.