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

President Donald Trump's latest economic move is to halt the de minimis exemption, a provision that made international shipments of low-value items cheaper. When the exemption ends on August 29, shipments valued at or under $800 will be subject to duty fees when sent by any carrier other than the international postal network, no matter what country they are coming from.

According to the White House's announcement of this change, shipments will either be assessed with an ad valorem duty equal to the tariff rate for the country of origin set by the International Emergency Economic Powers Act or with a limited-time specific duty between $80 and $200 per item. The specific duty will only be a available for six months, after which all shipments will be subject to an ad valorem duty. The administration claimed the de minimis exemption was harming US businesses and that the loophole was being used to ship synthetic opioids such as fentanyl into the country.

The administration had already suspended de minimis exemptions for shipments from China and Hong Kong in May. A large number of those low-cost purchases originated in those regions, which are the center for several online shopping sites specializing in inexpensive goods, such as Shein and Temu and Amazon's Haul.