De Minimis Loophole Closing

The White House announced Wednesday that the U.S. will end the de minimis exemption for China and Hong Kong next month, with other countries to follow.

April 2025 — In a sweeping effort to combat the flow of synthetic opioids into the United States, former President Donald J. Trump has signed an Executive Order ending de minimis duty-free treatment for low-value imports from China and Hong Kong. This move targets a long-standing trade loophole that allowed millions of packages under $800 in value to enter the U.S. daily without tariffs or thorough inspection.

Key Policy Changes

Effective May 2, 2025, at 12:01 a.m. EDT:

• All low-value imports from China and Hong Kong that previously qualified for the de minimis exemption will now be subject to full applicable duties.
• Postal shipments under $800 will face a duty of either 30% of declared value or a flat $25 per item, increasing to $50 per item after June 1, 2025.
• Carriers must report shipment details to U.S. Customs and Border Protection (CBP), maintain an international carrier bond, and remit duties on a set schedule.
• CBP may require formal entry for any postal package, regardless of its value.

Impact on Parcel Shippers

This executive action carries significant implications for parcel shippers, logistics providers, and eCommerce platforms that rely on high-volume, low-cost imports:

Shippers must now provide detailed data on previously exempt shipments. CBP will require complete customs information, and failure to comply could result in delayed deliveries or seizure of goods.

Carriers are responsible for ensuring duties are paid. This may require new systems, bonded carriers, and increased staffing to handle formal entries and customs processing.

Retailers and fulfillment providers will face pressure to communicate higher costs and potential delays to customers—particularly for products shipped directly from China.

With tariff advantages eroded, businesses may seek alternative suppliers or move inventory closer to U.S. customers to maintain delivery speed and cost competitiveness.

Addressing a National Health Emergency

The order directly targets deceptive practices used by Chinese exporters who have exploited the de minimis threshold to smuggle synthetic opioids into the U.S. According to CBP:

• More than 4 million de minimis shipments enter the U.S. every day.
• In fiscal year 2023, over 21,000 pounds of fentanyl were seized at U.S. borders—enough to kill over 4 billion people.
• China has incentivized chemical companies to export fentanyl and precursor chemicals, often concealed through false invoices and fraudulent shipping labels.

The Chinese Communist Party (CCP), which oversees state-run enterprises, continues to enforce strict import controls while taking advantage of U.S. trade leniency—a disparity the Trump administration seeks to correct.

Source: White House Press Release

Partnering with the experts at ebb Logistics ensures that your business stays ahead of changes with proactive planning and strategic cost-saving solutions. Our experienced ebb Consultants can help you navigate changes, optimize your shipping strategy, and implement solutions that will minimize the financial impact while keeping your shipping operations efficient and cost-effective.

Contact Us Today!