U.S. Ends Duty-Free De Minimis Policy for Chinese Shipments

The U.S. has reinstated tariffs on low-value shipments from China and Hong Kong, removing the de minimis exemption. The policy change impacts e-commerce companies and aims to enhance screening for illicit goods. This move might disrupt international air cargo traffic and complicate shipping logistics.

The Trump administration has reintroduced tariffs on low-value shipments from China and Hong Kong, effectively ending the de minimis exemption that previously allowed these items to enter the U.S. duty-free. The policy shift removes benefits for firms such as Shein and Temu, and is aimed at curbing the influx of illicit goods like fentanyl.

U.S. Customs and Border Protection is tasked with enforcing the new regulations, which impose a 145% tariff on most Chinese shipments, excluding smartphones. The policy is expected to heavily impact international air cargo, with potential drops in trade volume as high as 75%.

Shippers are concerned about the potential logistics nightmare as the new tariff regime could create significant bottlenecks. While the U.S. Postal Service is not handling duty collections, airlines and vessel operators must navigate the complexities of handling import taxes before shipments leave China.

(With inputs from agencies.)