Trump will end the de minimis exemption for low-cost global shipments

President Trump is ending the de minimis exemption for international shipments valued at $800 or less. This change, effective August 29, will impose duty fees on these shipments, excluding those sent through the international postal network. The White House states this move aims to protect U.S. businesses and curb the flow of fentanyl. Shipments will face either an ad valorem duty based on the country of origin's tariff rate or a temporary specific duty. This specific duty option will last for six months, after which only ad valorem duties will apply. Previously, de minimis exemptions were already suspended for shipments from China and Hong Kong. Many low-cost purchases affected by this policy originate from these regions. Online shopping platforms like Shein, Temu, and Amazon's Haul often source goods from these areas. The administration argues the exemption was a loophole exploited for illicit purposes. This action signifies a significant shift in international trade policy for low-value goods.