Trump’s De Minimis Order Could Raise Costs on Clothes and Goods From China - The New York Times


President Trump's order to eliminate a tariff loophole on goods from China could increase consumer costs and cause shipping delays, while also aiming to curb drug smuggling.
AI Summary available — skim the key points instantly. Show AI Generated Summary
Show AI Generated Summary

President Trump on Wednesday ordered the closure of a loophole that allows retailers to send clothes and other goods from China directly to American shoppers without paying tariffs.

But the order could raise prices for consumers and create delays as delivery companies and the United States Postal Service are forced to verify the value of many more packages than they do now, trade and logistics experts said.

The loophole, known as the de minimis exemption, currently applies to goods worth less than $800. Such goods are allowed to enter the United States tariff free. Mr. Trump’s order, which takes effect on May 2, removes the exemption from packages from China, the largest source of de minimis shipments, and Hong Kong. Items bought and shipped this way also require far less customs paperwork.

By ending the exemption, Customs and Border Protection will now collect tariff revenue on shipments worth less than $800. Mr. Trump also said his order would help prevent drug smuggling. He and others have claimed that fentanyl and its precursor ingredients are sometimes shipped to the United States as de minimis shipments.

Shippers in China “hide illicit substances and conceal the true contents of shipments sent to the United States through deceptive shipping practices,” Mr. Trump’s order said.

Lawmakers from both parties have called for reform to the de minimis provision.

“For too long, this customs loophole has let foreign exporters flood our market with cheap goods and helped drug traffickers move fentanyl past our borders — resulting in factory closures, job losses and deaths,” Representative Rosa DeLauro, a Democrat of Connecticut, said in a statement.

We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.

Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.

Thank you for your patience while we verify access.

Already a subscriber? Log in.

Want all of The Times? Subscribe.

🧠 Pro Tip

Skip the extension — just come straight here.

We’ve built a fast, permanent tool you can bookmark and use anytime.

Go To Paywall Unblock Tool
Sign up for a free account and get the following:
  • Save articles and sync them across your devices
  • Get a digest of the latest premium articles in your inbox twice a week, personalized to you (Coming soon).
  • Get access to our AI features

  • Save articles to reading lists
    and access them on any device
    If you found this app useful,
    Please consider supporting us.
    Thank you!

    Save articles to reading lists
    and access them on any device
    If you found this app useful,
    Please consider supporting us.
    Thank you!