President Trump's recent executive order removes the 'de minimis' tariff exemption for low-value imports from China and Hong Kong, set to take effect on May 2, 2025. This change is poised to significantly impact e-commerce, particularly for platforms like Temu that depend on small, inexpensive shipments. Historically, the de minimis rule allowed goods valued at up to $800 to enter the U.S. without customs duties, a threshold that has fueled the rapid rise of imports from China. This shift may necessitate adjustments in pricing strategies for many retailers.
With the de minimis exemption, small packages can bypass customs duties, which has enabled Chinese retailers to thrive in the US market, particularly during the e-commerce boom.
The de minimis rule, allowing items valued at $800 or less to enter without tariffs, was integral for companies like Temu who relied on affordable import strategies.
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