section_path: Multinational tariffs/De minimis exemption closure
section_name: De minimis exemption closure
paragraph_text: De minimis exemption closure
  
  Trump's February 2025 executive orders announcing tariffs on imports from China, Mexico, and Canada initially closed the US de minimis exemption for imports from all three countries. The de minimis exemption waives standard customs procedures on low-value packages to reduce administrative burdens. US Congress quadrupled the de minimis threshold from $200 to $800 in 2016, resulting in an over 1000% increase in shipments claiming the exemption by 2023. The US threshold was among the highest globally, over five times the size of the European Union 's, and used by many companies to send goods to the US without close inspection or taxes. The largest beneficiaries were Chinese e-commerce companies such as Shein and AliExpress. Some shipments were linked to drug trafficking. However, by February 7, 2025, Trump reopened the de minimis exemption for all three target countries to avoid overwhelming US customs officials.
  
  On April 2, 2025, Trump closed the exemption for China and Hong Kong again, beginning May 2. Imports shipped via the Universal Postal Union (UPU), of which USPS is a member, would be subject to a duty of 120% of the shipment's value or $100 per package—rising to $200 after June 1. Shipments by all other carriers, such as UPS and FedEx, became subject to all applicable standard duties—a minimum of 145% for Chinese goods. Trump directed that the de minimis exemption be closed for all countries in the future, once "adequate systems are in place" to collect duties. Following the closure, Chinese e-commerce company Temu said it would stop selling goods from China directly to US customers.
  
  Following trade talks between the US and China, the US cut tariffs on de minimis shipments from China to 54% beginning May 14.