The Trump administration ended duty-free access for low-value shipments from China and Hong Kong entering the US on Friday, 2 May 2025.

This followed after President Donald Trump signed an executive order on 2 May 2025, which ended “de minimis” treatment for China. This executive order eliminates “de minimis” exemptions used by Chinese e-commerce platforms like Temu and Shein, as well as traffickers of fentanyl and other illicit goods.  Sources say Trump ended the de minimis exemption for China due to its use for low-value shipments of fentanyl precursors into the US.

The move reinstates an executive order issued by Trump in February 2025, which was suspended due to inadequate screening procedures for shipments under USD 800. This lack of preparation led to widespread chaos at airports, resulting in millions of packages piling up.

A spokesperson for the US Customs and Border Protection (CBP), which is tasked to enforce and collect Trump’s tariffs on small Chinese shipments, said it has “a massive task” but is prepared.

“We are prepared and equipped to carry out enhanced package screening and enforce orders effectively as outlined”, the spokesperson said. 

Under CBP’s guidance, shipments from China and Hong Kong will now face Trump’s new 145% tariffs plus any prior duties, except for excluded items like smartphones. Items worth up to USD  800 sent from China via postal services now face a tax of 120% of the package’s value or a flat fee of $100, which will be increased to USD 200 in June 2025.

On 2 April 2025, the Trump Administration imposed two rounds of 10% tariffs on all Chinese imports and a 10% baseline tariff on imports from all countries. These measures also included reciprocal tariffs aimed at nations with large trade deficits with the US, which also includes China.

Later, Trump postponed the tariffs for 90 days, excluding the ones imposed on China. The administration then announced a steep 145% tariff on Chinese imports. In response, Beijing raised tariffs on US imports to 125%, escalating trade tensions further.

However, China has reportedly exempted some US imports from its 125% tariffs and is asking companies to identify essential goods for exemption. Meanwhile, the Trump administration has signalled a willingness to ease the trade war between the two largest economies.