Trump is sticking up for America. He won’t let the country get taken advantage of.
And Trump hit this foreign country where it hurts with bold new order.
Trump Targets Trade Loophole with New Executive Order
On Wednesday, President Donald Trump put pen to paper on an executive order that slams shut a long-standing trade loophole, ending the tariff-free ride for cheap Chinese goods entering the United States.
The president took aim at what’s known as the “de minimus” exception, a rule that previously let shipments valued under $800 slip through without duties.
Trump didn’t mince words, claiming the exemption has been a Trojan horse for trouble. “These shippers often avoid detection due to administration of the de minimis exemption,” he wrote, pointing fingers at exporters from China and Hong Kong.
He argued that this duty-free pipeline has fueled chaos, allowing shippers to “hide illicit substances” in packages and linking it directly to “the synthetic opioid crisis in the United States.”
The decision could send shockwaves through online retail giants like Temu and Shein, Chinese powerhouses that have thrived by flooding the U.S. market with ultra-affordable products. These companies have leaned heavily on the loophole to keep prices rock-bottom for American shoppers, but that edge may now dull under the weight of new tariffs.
This isn’t Trump’s first dance with the de minimus rule. Back in February, he hit pause on the exemption, only to reinstate it temporarily, giving the Commerce Department breathing room to figure out how to rake in the cash from these shipments.
“The Secretary of Commerce has notified me that adequate systems are now in place to process and collect tariff revenue for covered goods from the PRC otherwise eligible for duty-free de minimis treatment,” Trump noted in his latest order. With the infrastructure ready, he’s moving full steam ahead.
Beginning on May 2, packages under $800 will face a 30% ad valorem duty based on their value or a flat $25 per shipment—whichever applies. Come June 1, that per-package fee jumps to $50.
These new fees will replace other duties, like Trump’s 20% tariff on Chinese imports, that might have otherwise hit these goods. To keep the system tight, the order also mandates that carriers hauling international mail from China or Hong Kong into the U.S. post “an international carrier bond to ensure payment of the duty.”
The de minimus rule, born in the 1930s, was originally a perk for travelers bringing home souvenirs without the hassle of taxes. But in recent years, Chinese fast-fashion brands have turned it into a launchpad for explosive growth.
A Congressional Research Service report from earlier this year laid bare the numbers: cheap exports from China ballooned to $66 billion in 2023, a massive leap from $5.3 billion in 2018.
Not everyone’s cheering the change. The Cato Institute, a libertarian-leaning think tank, warns that closing this door could pinch everyday Americans—especially those with thinner wallets.
The de minimis exemption “serves as a crucial trade facilitation tool that particularly benefits lower-income consumers,” they argue, citing studies showing poorer U.S. zip codes rely heavily on these low-cost shipments from China.
One analysis they highlight estimates that axing the exemption could cost Americans between $11 billion and $13 billion a year—roughly $35 to $80 per person.
Trump signed this trade crackdown on the same day he unveiled new reciprocal tariffs targeting dozens of countries, signaling a busy week for his economic agenda.
For now, the days of duty-free bargains from China seem numbered, and the ripple effects—on prices, companies, and consumers—are just beginning to unfold.
Stay tuned to the Conservative Column.
