US ends de minimis exemption for low-value items from China today
Though this is a concern for businesses that have been sourcing their production to China to minimise costs, but it's still uncertain that US companies with domestic manufacturing units may be relieved from the competition of cheap Chinese imports.
Trump recently called the de minimis exemption “a big scam going on against our country, against really small businesses.”
Chinese exports of low-value packages rose to $66 billion in 2023, up from $5.3 billion in 2018, a February 2025 report by the Congressional Research Service revealed. And the US market has been a key destination.
US consumers are expected to face higher prices and delivery delays and disruptions now that parcels will go through a more complicated customs process to enter the country.
The change in regulation will lead to more workload for employees of commercial carriers and the US Customs and Border Protection (CBP).
The US Postal Service will choose whether to collect and remit either an ad valorem duty of 120 per cent of the low-cost shipment's value or a specific duty of $100 per shipment, which will increase to $200 per shipment effective 12:01 am EDT on June 1, 2025.
