President Trump has delivered a decisive blow to China’s economic exploitation by closing a significant trade loophole that allowed billions of cheap goods to flood American markets. The executive order targets the “de minimis” exemption that previously let packages valued under $800 enter duty-free, enabling Chinese retailers like Temu and Shein to undercut American businesses while potentially smuggling dangerous substances into our nation.
America First Trade Policy Restores Economic Sovereignty
Trump’s executive order, set to take effect May 2, will require all packages from China sent outside the international postal network to face applicable duties. Imports within the network will be taxed at 30% of their value or $25 per item, increasing to $50 starting June 1.
President Trump is putting America FIRST on trade! By closing the ‘de minimis’ import loophole, he’s stopping China from flooding our markets with cheap, untaxed goods. It’s time to protect American jobs and industry! https://t.co/XXzyzMrADi
— Laurel Lee (@Vote_Laurel) March 4, 2025
The White House cited the deadly opioid crisis as a key motivation behind this initiative, with Trump directly calling out China’s role in the fentanyl epidemic. Nearly 1.4 billion packages entered the U.S. under this exemption in 2024 alone, more than double the 636 million recorded in 2020.
Protecting American Industry and Stopping Illicit Drug Flow
The de minimis loophole has been extensively exploited by Chinese retailers, with over 90% of packages entering the U.S. using this exemption, and China is responsible for shipping 60% of these items. Trump’s order addresses the deceptive shipping practices used to conceal illicit substances, particularly synthetic opioids, that have devastated American communities.
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President Donald Trump signed two major executive orders rolling out a bold new tariff policy he’s calling… pic.twitter.com/YR1C4rsmeq
— Barrett (@BarrettYouTube) April 3, 2025
Under the new rules, carriers must report package details and item values, while U.S. Customs and Border Protection can demand documentation to verify contents. Carriers transporting goods from China or Hong Kong must now secure an international carrier bond to ensure duty payment, closing avenues for deception and tax avoidance.
Bipartisan Support for Ending Chinese Exploitation
The action has garnered support across party lines, with lawmakers recognizing the threat posed by this loophole to American manufacturing and public safety. Representative Rosa DeLauro, a Democrat from Connecticut, acknowledged that “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.”
“A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China. More than 100,000 people died last year due to the distribution of these dangerous and highly addictive POISONS.”
Chinese fast-fashion exports have skyrocketed to $66 billion in 2023, taking advantage of an initial exemption for tourists bringing back souvenirs. The Commerce Department has developed new systems to collect tariff revenues from these previously exempt goods, ensuring that Chinese retailers can no longer circumvent fair trade practices.
Trump’s executive action coincides with his broader implementation of reciprocal tariffs on dozens of nations taking advantage of American markets. By closing this loophole, the President has taken a significant step toward fulfilling his promise to level the playing field for American workers and manufacturers.
The order represents another example of Trump’s America First approach to trade policy, prioritizing domestic industry and national security over cheap imports. While liberal think tanks like the Cato Institute claim the move could cost Americans through higher prices, supporters argue the long-term benefits of protecting American jobs and stopping the flow of deadly drugs far outweigh these concerns.
Sources:
https://www.nytimes.com/2025/04/03/business/trump-de-minimis-china-shipments.html
