United States President Donald Trump on Wednesday signed an executive order eliminating the de minimis trade exemption for all countries, signaling a major shift in the nation’s tariff policy.
The move is designed to clamp down on duty-free imports of low-value goods.
Starting August 29, all imported shipments valued at $800 or less will no longer qualify for duty exemptions, regardless of their country of origin.
According to the White House, the executive order also stipulates that international packages arriving through postal services will be subject to tariffs based on both their declared value and country of origin.
This latest order builds on Trump’s earlier action in May, when he revoked de minimis privileges for shipments from China and Hong Kong. That decision faced legal pushback from an auto parts retailer, but a federal trade court upheld the administration’s policy earlier this week.
The de minimis rule has been increasingly utilized amid the growth of global e-commerce, with platforms like Temu and Shein using it to send inexpensive goods directly from Chinese warehouses to U.S. consumers, bypassing import duties.
Market reactions were immediate. Shares of PDD Holdings, the parent company of Temu, dropped following the announcement. Amazon also experienced a dip in stock value, due to its extensive third-party seller network and its budget-focused storefront, Haul, which sources a significant number of products from China.
