US EditionNo More Free Pass: New Rules Target Shein, Temu Shipments
UNITED STATES, JUL 30 – The executive order targets tariff evasion and fentanyl smuggling by ending duty-free treatment on low-value imports under $800, affecting 4 million packages daily, the White House said.
- On July 30, 2025, President Donald Trump issued an executive order to shut down the de minimis loophole, aiming to protect Americans from fentanyl, counterfeit goods, and sabotage.
- The loophole had become exploited to let low-value articles enter duty-free, with the White House stating `the de minimis exemption has been abused` to smuggle illicit fentanyl and other synthetic opioids into the United States, relying on lower security measures.
- Under the new rules, 4 million de minimis packages enter the U.S., facing a two-tier tariff structure with flat duties of $80 to $200 per item before shifting to ad valorem rates.
- Temu is halting direct shipments to U.S. customers as new import duties hit even low-value parcels, impacting a third of its revenue despite 239% GMV growth.
- Prior to this move, the exemption was scheduled to end in 2027 as part of a policy bill signed earlier this month, with bipartisan legislation to codify de minimis repeal by July 2027.
26 Articles
26 Articles
No more free pass: New rules target Shein, Temu shipments
For years, a subtle hole in U.S. trade law has allowed billions in foreign goods to slip through, untouched, untaxed and unbothered. Think of it like a backdoor left open, just wide enough for packages under $800 to pass through customs, duty-free. That metaphorical door, known as the de minimis exemption, turned into a highway for global retailers like Shein and Temu, delivering low-cost products to American doorsteps without paying a dime in i…
Packages below $800 have so far been duty-free in the US. Temu and Shein have benefited from this, but have to pay tariffs since May. Trump's new regulation is now expanding this globally.
As of September, it will no longer be cheap. Donald Trump closes the loophole for deliveries from China. The regulation mainly applies to suppliers such as Shein and Temu and could make direct orders unattractive.
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