U.S. Ends Duty-Free Exemption for Chinese Goods, Tariffs Surge

The Trump administration has ended the 'de minimis' duty-free exemption for low-value imports from China and Hong Kong, subjecting packages under $800 to new tariffs as high as 145% and requiring additional customs paperwork. This change, which affects popular e-commerce platforms like Temu, Shein, and AliExpress, is expected to result in higher prices and slower delivery times for U.S. consumers, as well as operational challenges for carriers such as FedEx, UPS, and DHL. The move aims to address concerns about deceptive shipping practices, illicit goods, and the impact of cheap imports on American businesses, while potentially providing a competitive boost to domestic manufacturers. The expiration of the exemption is also disrupting global supply chains, with some U.S. retailers pausing and then restarting orders from Chinese factories to avoid missing key sales periods like Black Friday and Christmas. While rerouting supply chains is possible, analysts note that for many products, alternatives to Chinese manufacturing are limited. The U.S. Customs and Border Protection agency has stated it is prepared to enforce the new rules, though the process may slow package clearance and further strain logistics.