On Friday, the US closed the de minimis loophole, which previously allowed low-value imports from China to enter duty-free, affecting companies like Shein and Temu. Introduced in the 1930s, the loophole allowed goods worth up to $800 to bypass tariffs, resulting in over 1.36 billion shipments in one fiscal year. The White House cited deceptive practices by Chinese sellers and the influx of illicit drugs as reasons for the closure. Consequently, goods under $800 will incur steep tariffs, intensifying existing trade tensions amid the US-China trade war.
As of Friday, parcels worth less than $800 will be subject to a 120% levy or a flat fee of $100, rising to $200 from June.
The term de minimis may mean of little importance, but the policy is responsible for a huge volume of consumer goods, with about 1.36bn shipments entering the US.
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