Trump ends duty-free imports for low-value goods

In a dramatic escalation of his administration’s protectionist trade agenda, President Donald Trump on July 30 signed an executive order ending the long-standing de minimis exemption that has allowed millions of low-value parcels to enter the United States duty-free and with minimal customs screening.

The new policy takes effect August 29, two years ahead of a congressional phase-out set for mid-2027, Caliber.Az reports via American media.

The move is aimed at closing what Trump calls a massive trade loophole that enables tariff avoidance and undermines American industry. It builds on earlier actions taken this year to revoke de minimis privileges for Chinese and Hong Kong shipments and now extends full customs duties to all low-value imports — defined as those valued under $800 — regardless of origin.

“This is necessary to protect American workers and stop systematic tariff evasion,” Trump said, invoking emergency powers under the International Emergency Economic Powers Act. He described the surge in cheap, small-parcel imports as a national security threat, citing illegal fentanyl smuggling and the ballooning trade deficit.

The policy shift deals a major blow to cross-border e-commerce platforms — including Chinese retailers Temu and Shein — and small U.S. businesses that depend on low-cost overseas goods. These sellers have long relied on the de minimis rule to ship products directly to U.S. consumers without incurring duties or complicated paperwork.

The change is also expected to disrupt international postal networks and global logistics operations. With U.S. Customs and Border Protection (CBP) processing around 4 million de minimis shipments per day, enforcement has lagged, allowing counterfeit and illicit products to enter the country largely unchecked.

CBP now says it has the systems in place to process these parcels as formal customs entries. Under the executive order, air carriers and other transportation providers — not just shippers — will be required to collect and remit duties to the government. The U.S. Postal Service, which lacks the technical capacity to file entries through CBP’s system, will rely on commercial intermediaries to handle duty payments.

The crackdown arrives as the Trump administration aggressively pursues new tariff agreements. This week, the United Kingdom and Japan agreed to impose export tariffs of 10% and 15% respectively, aligning with Washington’s push for a new global tariff framework. Countries that do not comply face the threat of sharply higher duties beginning August 1.

Industry groups representing American manufacturers welcomed the order. The National Council of Textile Organizations (NCTO) hailed it as a long-overdue correction to an exploitative system.

“For years, the de minimis mechanism has operated as a black box for low-cost, subsidized, and unethical Chinese imports,” said NCTO President Kim Glas. “This is a game changer. It restores fairness, closes a major gateway for illegal and toxic goods, and paves the way for reinvestment and job creation here at home.”

Though the recent tax-and-spending package passed by Congress included a delayed repeal of the de minimis rule set for July 1, 2027, Trump’s executive order renders that provision moot by implementing the change this summer. Beginning in 30 days, importers — including individual online buyers — will be responsible for customs declarations and full tariff payments on all goods entering the U.S., regardless of value.

While large U.S. logistics firms may benefit from increased domestic warehousing and bulk inventory shipments, the policy could raise costs for consumers and complicate compliance for small-scale importers.

Analysts say the new policy reflects Trump’s broader effort to restructure global trade around nationalist priorities and secure tighter control over the flows of goods entering the United States — even if it risks disrupting the booming e-commerce sector in the short term.

By Tamilla Hasanova