Wed, 30 Jul 2025

Wed, 30 Jul 2025 Trump signs order ending global tariff exemption for low-cost goods

The de minimis exemption had allowed goods valued at $800 or less to enter the US without paying any tariffs.
US President Donald Trump has signed an executive order ending a global tariff exemption that allowed shoppers to import goods worth up to $800 without paying duties. The new rule, which takes effect on August 29, applies to all countries and not just China as previously stated. This means that online shopping sites like Shein and Temu will no longer be able to ship cheap clothes and household items into the US duty-free. The White House claims that the exemption was being exploited by cartels to smuggle synthetic opioids into the country and by shippers who were falsely reporting the origin of their goods. The administration also says that some countries, including Canada and Mexico, were using the exemption to circumvent duties on their exports. Trump used emergency presidential powers to speed up the implementation of the new rule, which was previously scheduled to take effect in July 2027. The move is seen as a bid by the administration to crack down on illicit trade and protect American businesses. The rule does not apply to personal items worth $200 or less that Americans bring back from foreign travel, nor to gifts valued at $100 or less. However, it will affect many online shoppers who rely on cheap imports from sites like Shein and Temu.
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