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On May 2, the United States officially canceled the $800 de minimis exemption for packages originating from China. This move marks a dramatic shift in how small-value imports are taxed — and it could reshape cross-border e-commerce for millions of consumers and sellers alike.

What’s Changing?

Under the new rule:

  • All packages from China — even if they contain goods purchased by Americans — will now be subject to punitive tariffs.
  • Private couriers like UPS and FedEx must pay a 145% tariff on these shipments, a policy that’s been in place since early April.
  • Postal services must either:
    • Pay tariffs equivalent to 120% of the package value, or
    • Pay a flat tariff of $100 per package, which will rise to $200 starting June 1.

Why It Matters

The de minimis rule had allowed small packages (valued under $800) to enter the U.S. duty-free. This exemption was a key driver behind the success of Chinese platforms like Temu, Shein, and AliExpress, which rely on large volumes of low-cost goods shipped directly to American consumers.

Now, with that exemption gone, the cost of goods shipped from China will rise significantly — especially for budget-conscious U.S. consumers who rely on affordable imports.

Hidden Agenda?

The move is being seen as part of a broader protectionist shift, especially targeting China. While some argue it helps level the playing field for U.S. manufacturers, others view it as politically motivated, particularly in an election year.

Interestingly, goods from other countries are not affected the same way — highlighting that this policy is aimed squarely at curbing China’s e-commerce dominance.

What Should Sellers Do?

  • Re-evaluate shipping strategies: Relying on private carriers may now be cost-prohibitive. Consider postal channels or third-country transshipment — but beware of compliance risks.
  • Explore bonded warehouses or fulfillment in the U.S. to minimize exposure to repeated tariffs.
  • Stay transparent in declarations to avoid penalties or CBP enforcement actions.

Conclusion

This isn’t just a tariff change — it’s a turning point in U.S.-China trade. Sellers must adapt quickly to survive this regulatory storm. The golden era of cheap direct-from-China parcels may be over, but smart operators will find ways to pivot, survive, and thrive.