According to the Trump administration, China’s De Minimis exemption, which stems from Section 321 of the Tariff Act of 1930, will finally end on May 2nd.
In recent years, China’s De Minimis exemption has devastated American retailers, caused years of surging USPS shipping costs for Americans, and flooded America with counterfeit and dangerous products.
An estimated one billion Chinese “small parcels” entered the USA in 2023.
Here is our previous post about China’s De Minimis exemption. The De Minimis exemption means Chinese “small parcels” bypass import duties, and usually bypass customs as well. The US postal system is forced to deliver these parcels for significantly less money than they get for domestic shipping. This had caused years of relentless increases in the cost of postage for Americans. The Obama administration expanded this to anything shipped from China costing less than $800.
Joe Biden signed a tease executive order calling for a rollback in China’s exemption. However, nothing was actually done. On February 1st, Trump ordered a full stop beginning on February 4th. However, Trump quickly reneged because hundreds of thousands of parcels were piling up at American airports.
Now, Trump has ordered the exemption to end on May 2nd.
Chinese drop-shipping giant Temu has already suspended multi-million dollar US ad campaigns on TikTok, Facebook, Google, and others.
