U.S. Ends Duty-Free Treatment for Low-Value Chinese Imports Under $800, Imposes New Tariffs

1. Policy Change Overview:

   • Previous Rule: Shipments under $800 (de minimis threshold) were exempt from duties.
   • New Rule (May 2, 2025):
     • 30% tariff on item value or $25 minimum charge per package (whichever is higher).
     • Example: A $100 item would incur a $30 fee; a $10 item would cost $25.
   • June 1, 2025 Update: Flat fee rises to $50 per package, regardless of value.

2. Targeted Impact:

   • Primarily affects e-commerce platforms (e.g., Temu, Shein, AliExpress) and small businesses shipping from China.
   • Consumers may face higher prices for budget goods, electronics, and apparel.

3. Rationale:

   • U.S. aims to "level the playing field" for domestic retailers competing with tax-free Chinese imports.
   • Part of broader trade adjustments to address subsidized Chinese goods and customs loopholes.

4. Industry Reactions:

   • Logistics providers: Expect delays as customs processes more taxable shipments.
   • Online sellers: May consolidate orders or raise prices to offset costs.

5. Compliance Reminder:

   • Sellers must accurately declare values; mislabeling may result in seizures or penalties.

Quote for Context:
"This policy shift closes a major tariff advantage for Chinese exporters and reshapes the economics of cross-border retail."
— Trade Analyst, Washington Post

Key Takeaways:
✔ No more tax-free Chinese imports under $800 starting May 2.
✔ $25–$50 fees per package will raise costs for consumers and sellers.
✔ Prepare for June 1 fee hike—adjust pricing or logistics strategies now.

For Businesses: Need help navigating the new rules? Contact trade compliance experts.
For Consumers: Budget for higher costs on direct-from-China purchases.