President Donald Trump signed an executive order Wednesday to shut down the de minimis loophole, a move aimed at protecting Americans from a surge of fentanyl, counterfeit goods, and economic sabotage. In effect, the Trump administration is cracking down on low-value shipments from Chinese e-commerce giants like Temu and Shein, which have flooded the U.S. market with literal junk.
Effective August 29, the Trump administration will end de minimis exemptions for imported goods sent through the international postal network that are valued at or under $800. These items will be subject to full customs duties.
These imported goods will be subject to a new two-tier tariff structure, including a temporary flat-rate duty of $80 to $200 per item before transitioning to an ad valorem duty methodology based on country-specific tariff rates under the International Emergency Economic Powers Act (IEEPA).
The White House says the move is part of a broader campaign to combat what it has declared a series of national emergencies, including “closing the catastrophic loophole used to, among other things, evade tariffs and funnel deadly synthetic opioids as well as other unsafe or below-market products that harm American workers and businesses into the United States.”
“The de minimis exemption has been abused, with shippers sending illicit fentanyl and other synthetic opioids, precursors, and paraphernalia into the United States in reliance on the lower security measures applied to de minimis shipments, killing Americans,” the White House stated.
The bottom line is that Trump closing the de minimis loophole (order values under the $800 threshold) will be disastrous for Temu and Shein, who have exploited the loophole to ship millions of low-value packages directly to U.S. consumers without paying tariffs or undergoing rigorous inspections.
Temu is halting direct shipments to U.S. customers as new import duties hit even low-value parcels. The move ends its reliance on the “de minimis” loophole. Prices will rise, and with a third of Temu’s revenue from the U.S., the shift could sting—despite 239% GMV growth. pic.twitter.com/KZ1DALLQse
— Statista (@StatistaCharts) May 7, 2025
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