The Trump administration has officially closed a loophole that allowed Americans to buy cheap goods from China without paying tariffs. The move is aimed at helping US manufacturers compete with low-cost Chinese products. However, it has resulted in higher prices for online shoppers.
Prior to the change, companies could import up to $800 worth of goods duty-free and avoid other regulations, mainly through direct shipping to consumers or small businesses. This led to a surge in individual packages from China, often via air transport, and shipped from e-commerce platforms like Shein and Temu.
The loophole gained popularity after President Trump imposed tariffs on Chinese goods during his first term. As the president increased tariffs in his second term, companies found ways to use the exemption to avoid paying duties on their products. The closure of this loophole aims to reduce the cost disparity between US manufacturers and Chinese competitors.
Source: https://www.nytimes.com/2025/05/02/business/economy/trump-china-tariffs-de-minimis.html