Trump ends duty-free imports of Chinese goods, raising online prices

The Trump administration has ended a trade exemption allowing Chinese goods under $800 to enter the U.S. duty-free, a move likely to disrupt e-commerce and raise costs for online shoppers.

The decision targets a loophole known as the de minimis rule, which had enabled e-commerce giants like Shein and Temu to ship low-value items directly to U.S. consumers without incurring tariffs, Caliber.Az report via U.S. media.

The exemption had sparked concern among U.S. manufacturers, who argued it undermined domestic production and employment by allowing a flood of cheap Chinese imports.

Effective Friday, shipments originating from mainland China and Hong Kong are no longer eligible for the waiver. The change follows growing criticism that the de minimis threshold was being exploited to circumvent tariffs, particularly after Trump imposed duties of at least 145% on Chinese goods during his first term.

"This was a scam against our country and our small businesses," Trump said during a cabinet meeting earlier this week. "We’ve ended it."

The administration also linked the move to national security concerns, claiming the exemption facilitated illegal fentanyl shipments by allowing traders to bypass customs scrutiny.

U.S. Customs and Border Protection handled over one billion de minimis parcels in 2023, with an average declared value of $54. Textile products accounted for more than half of the shipments by value, according to industry data. The National Council of Textile Organizations described the exemption as devastating to the U.S. textile sector and accused it of allowing unsafe goods to enter the country.

Gabriel Wildau, a China analyst at consultancy Teneo, said the decision would "take a bite out of Chinese exports" and force online platforms to significantly raise prices, hitting price-sensitive American consumers.

The policy shift is likely to weigh on private carriers like FedEx and UPS, which built a lucrative business around shipping low-value goods from China. Some platforms have already adapted—Temu has introduced new “import charges,” while Shein has begun incorporating tariffs into its pricing.

While the exemption still applies to other countries, U.S. officials warned they intend to tighten controls further. Customs authorities are also bracing for attempts to reroute Chinese-made goods through third countries or via postal services, which currently face lighter oversight.

Trump’s latest trade measure reflects a broader strategy to counter Chinese economic practices while bolstering U.S. industry, even at the risk of higher prices for consumers.

By Aghakazim Guliyev