Trump’s order to end ‘de minimis’ tariff break expands from China to rest of the world
Duty-free exemption on small packages worth US$800 or less fuelled China’s dominance in the industry – but the model is now under threat
The White House announced the order on Wednesday as part of efforts to close loopholes used to evade tariffs and smuggle “deadly synthetic opioids as well as other unsafe or below-market products” into the United States. It will come into effect on August 29.
The move aimed to close what many considered a regulatory loophole exploited by Chinese platforms like Temu and Shein to rapidly scale their businesses.
02:07
China, US finish Stockholm trade talks with divergence on timing of tariff pause extension
Experts said the latest action marked a return to trade normality and left Chinese exporters with limited options: either compete in an already saturated domestic market, or battle fellow Chinese sellers abroad.