President Donald Trump has signed an executive order (EO) aimed at ending a trade loophole that allows retailers to avoid “liberation day” import operations.
Trump signed EO Wednesday was aimed at eliminating minimal loopholes in Chinese and Hong Kong products. This rule protected businesses from import duties for certain packages under $800. Such Chinese packages sent outside the international postal network face “all applicable obligations” under the new rules.
According to EO, such imports from China sent within the network are subject to a tax rate of 30% of the value or $25 per import. EO also said the dollar amount will increase to $50 starting June 1st.
“Many shippers based in the People’s Republic of China (PRC) hide illegal substances and hide the true content of cargo sent to the US through deceptive shipping practices. These shippers often avoid detection. de minimis Exemptions under Section 321(a)(2)(c) of the Customs Act of 1930, amended (19 USC 1321(a)(2)(c)).
Trump nukes the infamous section 321 de Minimis from China.
As of May 2, 2025, this applies to all countries.
China is not happy. pic.twitter.com/e4j8zgvxqd
– John Elder | Amazon’s Growth | Private Label (@blacklabeladvsr) April 2, 2025
To implement this measure, all carriers must report the details of the package and, if they choose to pay a 30% obligation, they must report the value of the item according to EO. It also allowed US Customs and Border Protection (CBP) to request documents and information from transport regarding the number or value of imported goods.
Over 90% of packages shipped to the US are currently operating under a minimum exemption, Reuters It has been reported. China loads 60% of these packages, with retailers like Sheen and Tem leading. (Related: Corporate Outlets omit important details about Chinese online retailers that could be hurt by Trump’s tariffs)
Using the 2024 DE Minimis exemption, approximately 1.4 billion packages have entered the US, doubling the total 636 million times in 2020. According to CBP.
White House Fact Sheet Quote The opioid crisis, the main reason for this initiative, argues that x de Minimis exemption is a critical step in halting the influx of synthetic opioids into the US.
Trump has previously targeted the fentanyl crisis and has denounced China for the manufacture and supply of the drug.
“The majority of these drugs are made in the form of fentanyl, made and supplied by China. The distribution of these dangerous and highly addictive poisons has killed more than 100,000 people last year.”
EO is set to take effect on May 2nd.
