AsianFin -- U.S. President Trump on Monday walked back his threat to impose a 25% tariff on imports from Mexico and Canada, opting instead to delay the levies for at least a month after securing minor border security concessions from both countries. However, he moved forward with a 10% tariff on all Chinese imports.
As part of this policy shift, the White House announced the closure of the century-old de minimis exemption, which previously allowed packages worth under $800 to enter the U.S. duty-free. The exemption had fueled the rapid rise of Chinese e-commerce giants like Shein and Temu, which ship low-cost products—from designer knockoff dresses to gaming monitors—directly to American consumers without incurring import duties.
The de minimis threshold was raised from $200 to $800 in 2016, triggering a surge in duty-free shipments from 139 million parcels in 2015 to over 1.36 billion in 2024, according to U.S. Customs and Border Protection. These shipments now account for 90% of all packages entering the U.S.
The rule change has been welcomed by American manufacturers and retailers, who have long argued that the exemption created an unfair advantage for Chinese competitors. Meanwhile, Amazon (AMZN) has attempted to counter the rise of Shein and Temu by launching its own direct-from-China marketplace, dubbed a “Temu clone,” which has received mixed reviews.
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