The US has ended its de minimis provision for low-value imports from China and Hong Kong, effective May 2, 2025. This means that goods valued at or under $800, previously eligible for duty-free entry, are now subject to tariffs.This change affects many e-commerce companies like Shein and Temu, impacting the cost of goods for American consumers. 

What is de minimis?
De minimis refers to a trade policy that allows low-value goods to enter a country duty-free. It was originally intended to simplify customs procedures for small shipments. 

Why is it being ended for China?
The US government is ending the de minimis provision for China and Hong Kong as part of measures to address the synthetic opioid crisis and to ensure fair trade practices. The US government argues that the provision was being abused by Chinese e-commerce companies to avoid paying tariffs. 

What are the consequences?
The elimination of de minimis means that low-value goods from China will now be subject to tariffs, potentially increasing their price for consumers. This could impact e-commerce companies like Shein and Temu, as well as other businesses that rely on this provision. 

How does this affect consumers?
Lower-income households are expected to be particularly affected, as many of these packages are shipped to areas with lower incomes.