Small imports to face U.S tariffs as President TRUMP closes de minimis loophole

Wednesday, July 30, 2025 - President Donald Trump has signed an executive order closing the so-called de minimis trade loophole that exempted low-value imported goods from tariffs.

The order, which takes effect Aug. 29, means that parcels valued at $800 or less that previously avoided import duties will be subject to tariffs. It applies to all countries.

In a Wednesday statement, the White House called the loophole “catastrophic," framing it as something that has long allowed shipments of fentanyl into the U.S. because small parcels face “less scrutiny than traditional imports."

Trump had previously closed the loophole for goods entering the country from China and Hong Kong.

The move had already significantly hit U.S. demand from retailers Temu and Shein, which had taken advantage of the rule to ship orders directly to customers without tax, so long as they were worth less than $800.

The White House called the de minimis rule a “big scam” that results in significant lost revenue for the U.S.

It added that the volume of de minimis shipments has skyrocketed in 2025, with 309 million recorded this fiscal year alone, compared to 115 million for all of the previous year.

“The de minimis exemption has been abused, with shippers sending illicit fentanyl and other synthetic opioids, precursors, and paraphernalia into the United States in reliance on the lower security measures applied to de minimis shipments, killing Americans,” it said.

Packages sent to the U.S. outside of the international postal network will now face “all applicable duties,” the White House said.

Goods coming through the postal system, meanwhile, will either be given an “ad valorem duty” equal to the effective tariff rate of the country the package came from, or a specific tariff ranging from $80 to $200 depending on the country of origin’s rate.

The White House added: "Trump is acting more quickly to suspend the de minimis exemption than the OBBBA [One Big Beautiful Bill Act] requires, to deal with national emergencies and save American lives and businesses now.”

Longstanding exemptions that allow Americans traveling abroad to bring back up to $200 in personal items tariff-free will stay in place, according to the statement.