President Donald Trump has revoked the long-standing $800 de minimis tariff exemption, dealing a blow to Chinese e-commerce giants like Temu, Shein, Alibaba, and JD.com. The change, part of new trade levies25 per cent on Canada and Mexico and 10 per cent on Chinaeliminates the duty-free status of small-value shipments to the US.
Previously, Chinese retailers bypassed tariffs by shipping directly to American consumers, leveraging the exemption to undercut domestic businesses. US Customs estimates that $48 billion worth of goods entered under this loophole in the first nine months of last year. The shift will likely drive up costs for bargain shoppers who relied on discount platforms.
The White House did not clarify whether the de minimis rule change applies solely to new tariffs or extends to existing levies. However, trade experts suggest it could broadly impact all Chinese, Canadian, and Mexican imports.
A senior administration official defended the move, citing lost tariff revenue and national security concerns, particularly fentanyl trafficking. Lawmakers have warned that small-value shipments make it easier to smuggle illicit substances into the US.
Temu has already begun importing goods in bulk and storing them in US warehouses to mitigate the impact, but the change threatens its discount-driven model.
Trump’s tariffs, aim to penalize China, Canada, and Mexico for allegedly failing to curb fentanyl flows and illegal immigration.
