New tariffs are now hitting cheap US imports from China

The de minimis exception, which has allowed businesses to import low-value goods without duties from China and Hong Kong, has expired as of 12:01AM ET today as part of President Trump’s executive order signed last month.

Many businesses in the US rely on the de minimis loophole. Any package valued under $800 — including electronics, toys, and clothing from companies like Shein — can come to the US duty-free under the exception, leaving the products super-cheap for buyers. In 2024, about 1.4 billion packages entering the US claimed exemption from duties under de minimis. Retailers Shein and Temu have already raised prices to account for tariffs.

The Trump Administration’s new rules will add either a 30 percent fee to the value of every package shipped to the US, or $25 (with an increase to $50 starting June 1st) — a choice every postal carrier must make and apply to all parcels. The new fees are being implemented after Trump hit most Chinese goods with high tariffs last month, launching an escalating trade war that ended with a 145 percent import tax increase. In retaliation, China has added a 125 percent fee on US goods.