Explainer | What Hongkongers should expect with official end of ‘de minimis’ exemption by US

The Post unpacks consequences of end of rule that allowed products valued at US$800 or below to be shipped to United States duty-free

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Chinese e-commerce giants Shein and Temu have already raised their prices in response to the elimination of the de minimis exemption. Photo: Reuters

Published: 10:16pm, 2 May 2025Updated: 11:22pm, 2 May 2025

Washington ended the “de minimis” exemption for mainland China and Hong Kong on Friday that had allowed products valued at US$800 or below to be shipped to the United States duty-free.

While there are indications Washington and Beijing are moving towards easing their tit-for-tat tariff war, businesses in Hong Kong and the mainland have already been adjusting their business models to the new reality.

So what should Hongkongers expect with the removal of the exemption and how have local businesses responded? The Post breaks it down.

1. What are the new charges?

The de minimis provision allowed companies to avoid US import duties by shipping products valued at US$800 or less directly to individual consumers in small parcels, usually via air cargo.

With its removal, those items are now subject to a 120 per cent tax or a flat rate of US$100, which is scheduled to go up to US$200 in June.

Washington claimed the provision was being exploited by mainland e-commerce operators, such as Temu and Shein, to bypass existing tariffs that traditional importers and domestic manufacturers were paying.

Shipments under the exemption accounted for 92 per cent of all cargo entering the US, according to the US Customs and Border Patrol.