Policy Changes and Implications
announced the closure of the de minimis trade exemption, effective May 2, targeting goods worth less than $800 to enter the duty-free, with a phased tariff increase.
The move aims to combat unfair advantages for Chinese e-commerce companies, concerns over counterfeit and unsafe goods, and the facilitation of illicit drug shipments, notably fentanyl.
Impact on Businesses and Consumers
Companies like and , which benefited from the provision, are now faced with increased operational costs and are adapting by building U.S. warehouses for quicker deliveries.
Critics argue the elimination will raise costs for consumers and harm small businesses, while supporters believe it will level the playing field for U.S. retailers and enhance security.
