Global selling insights

U.S. Low-Value Duty Exemption for Chinese Products Ends

Written by Hans-Peter Höllwirth | May 2, 2025 11:00:00 AM

U.S. Low-Value Duty Exemption for Chinese Products Ends

On May 2, the U.S. eliminated the de minimis duty exemption for goods originating from China and Hong Kong. Tariffs will apply to all shipments containing goods made in China or Hong Kong — regardless of value or shipping method.

 

Key Change in Detail

Previously, shipments valued at $800 or less could enter the U.S. duty-free under the de minimis exemption. This will no longer apply to products from China or Hong Kong.

An executive order issued on April 2 announced to eliminate this de minimis exemption for low-value imports of China (and Hong Kong) products, effective May 2, 2025. This applies to all shipments containing Chinese (or Hong Kong-made) goods, even if the seller or warehouse is located elsewhere.

Parcels shipped with express carriers will be subject to all regular and additional duties, amounting to 150% or more of the import value for most products.

Type of Tariff Rate Notes
Base tariff avg. 3.5% product based MFN rate
Pre-2025 extra tariff  7.5% – 100% on Chinese products
“Fentanyl tariff” 20% introduced in February/March
“Reciprocal tariff” 125% introduced in April

Shipments under $800 sent through the international postal network will be subject to either a duty rate of 120% or $100 per item (increasing to $200 per item from June 1, 2025).

Glopal started applying the new regulations from April 30, as orders placed or shipped on that date were anticipated to reach the U.S. border on or after May 2.

 

Looking Ahead

The United States currently has the world’s highest de minimis threshold at $800. This threshold was raised from $200 in 2016 to make it easier for small U.S. businesses to import products.

The U.S. government has signalled plans in April to extend the elimination of the $800 de minimis threshold to all countries as soon as “adequate systems are in place to fully and expeditiously process and collect duty revenue”. However, no official timeline has been announced yet.

 

Recommended Actions

We recommend businesses delivering to the U.S. to:

  • Accurately assign the country of origin for every product to avoid unexpected and potentially unnecessary tariff costs. Review and adjust product sourcing if possible.
  • Review and update U.S. pricing of products manufactured in China to protect profit margins.
  • Leverage Glopal’s T&D reverse calculation or B2B2C solution to reduce the impact of those new tariffs by half on average.

 

 

Sources