US President Donald Trump signed an executive order ending a global tariff exemption used by shoppers of low-cost goods.
The order, signed on Wednesday, comes into force on 29 August and broadens earlier presidential action that specifically targeted cheap products from China and Hong Kong to now cover the rest of the world.
The de minimis exemption had allowed goods valued at $800 or less to enter the US without paying any tariffs. US consumers relied on the exemption to buy cheap clothes and household items from online commerce sites like Shein and Temu.
The White House says the global exemption was being used to “evade tariffs and funnel deadly synthetic opioids” to the US.
The administration already ended the de minimis exemption for Chinese goods on 2 May but the rest of the world was spared until now.
While China accounted for the vast majority of shipments using this exemption, Canada and Mexico were also significant sources of low-cost goods being shipped into the US, which had been exempt from duties.
When the new rules into force, packages will face the same tariff rate as that of traditional goods from the country of origin.
Congress had planned to end the de minimis exemption for all countries when it passed the One Big Beautiful bill earlier the month. But an end to the global exemption wasn’t set to come into force until July 2027.
Trump used emergency presidential powers to override the deadline set by Congress and move it significantly forward to a month from now. This was done “to deal with national emergencies and save American lives and businesses now,” the White House said.
The White House said opioid smugglers were using the de minimis exemption to send illicit drugs into the US because they were less likely to be checked by customs officials.
It also said some shippers were circumventing duties by falsely reporting the country of origin for goods entering the US.
The rule does not affect personal items Americans carry with them from foreign travel valued at $200 or less and it does not affect gifts valued at $100 or less.
By BBC News
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