U.S. Ends Duty-Free Rule for Chinese Packages, Impacting Shein, Temu, and Air Cargo

The Trump administration has officially ended duty-free access for low-value shipments from China and Hong Kong, revoking the "de minimis" exemption that benefited e-commerce giants like Shein and Temu. The move, aimed at curbing illicit fentanyl imports and enforcing tougher trade measures, imposes a 145% tariff on Chinese shipments, regardless of value, with few exceptions such as smartphones.

The decision reinstates an earlier Trump executive order that was briefly paused due to customs bottlenecks. U.S. Customs and Border Protection (CBP) says it is now ready to enforce enhanced screening measures without disrupting passenger travel. Express carriers like FedEx, UPS, and DHL will handle most shipments under the new rules, while postal deliveries face a 120% tax or a $100 flat fee—rising to $200 in June.

Although CBP suspended a requirement for formal customs entry on goods over $250 subject to tariffs, logistics experts warn this undermines enforcement. Informal entry processes lack detailed data, making it harder to detect illicit goods. Publican CEO Ram Ben Tzion noted that screening under informal entry is "next to impossible" for fentanyl-related substances.

The U.S. Postal Service won’t collect duties; instead, airlines must ensure taxes are paid before goods leave China. Industry leaders, including Amazon and eBay via the International Mailers Advisory Group, voiced concerns over potential shipping disruptions.

De minimis shipments from China reached $5.1 billion in 2024, accounting for about a third of U.S. air cargo tonnage from Asia. Analysts predict a 75% decline in this traffic and warn international air freight growth could drop to near-zero levels this year due to the policy shift and weakening global demand.