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De Minimis loophole expires for Chinese-made goods & temporary tariff relief
On May 2nd, 2025 - the United States implemented the removal of the De Minimis loophole on all goods produced in China.
Imported goods that are valued at or under $800 no longer qualify for duty-free entry and will be subject to all applicable U.S. duties, processed under applicable entry and payment procedures.
Soon after this policy went into effect - on May 14th, 2025 - U.S. Customs and Border Protection (CBP) implemented major tariff changes following President Trump’s latest Executive Order. This shift came after newly negotiated terms between the U.S. and China, pausing certain tariff policies for a 90-day period - or until August 13th, 2025.
While this reduction offers short-term relief, key trade measures are still in effect during the reprieve — and they continue to impact brands manufacturing in China.
Imported goods that are valued at or under $800 no longer qualify for duty-free entry and will be subject to all applicable U.S. duties, processed under applicable entry and payment procedures.
Soon after this policy went into effect - on May 14th, 2025 - U.S. Customs and Border Protection (CBP) implemented major tariff changes following President Trump’s latest Executive Order. This shift came after newly negotiated terms between the U.S. and China, pausing certain tariff policies for a 90-day period - or until August 13th, 2025.
While this reduction offers short-term relief, key trade measures are still in effect during the reprieve — and they continue to impact brands manufacturing in China.
What does this mean for my business?
Chinese imports were subject to tariffs up to 145%+ before the short-term pause was implemented on May 14th.
• Currently, a new 30% total tariff is in place on most goods of Chinese origin.
While the net tariff has dropped, cumulative duties on some goods still exceed 55% - especially for DTC brands. This is a result of new cost variables being introduced with the 90-day tariff relief policy.
The De Minimis loophole is still gone, but updated duties now apply to any item produced in China, regardless of value.
• Packages shipped via postal channels are subject to either 54% ad valorem duty or a $100 per package flat fee, at the carrier’s discretion.
• This applies regardless of the item’s value, with a breakpoint of $185.18 — meaning packages worth less than that will typically default to the 54% rate.
• No retroactive refunds will be issued for entries filed before May 14th.
It’s likely that we’ll see a surge in shipping rates due to volume, as merchants may rush to source goods before tariffs potentially rise again after the 90-day window closes.
Other measures still in place during the 90-day pause:
• Section 301 Tariffs: In place for targeted Chinese goods, ranging from 7.5% to 25%.
• Section 232 Tariffs: Applied to steel (25%) and aluminum (10%) products, but exempt from the 10% reciprocal tariff.
• Additional Requirements for Brands: Licenses, certification, importer SSN, and origin of proof.
• Consumer Impact: Packages may be held in customs until additional duties and taxes are paid for as an extended result of the trade shifts and lack of resources at the U.S. border.
• Currently, a new 30% total tariff is in place on most goods of Chinese origin.
While the net tariff has dropped, cumulative duties on some goods still exceed 55% - especially for DTC brands. This is a result of new cost variables being introduced with the 90-day tariff relief policy.
The De Minimis loophole is still gone, but updated duties now apply to any item produced in China, regardless of value.
• Packages shipped via postal channels are subject to either 54% ad valorem duty or a $100 per package flat fee, at the carrier’s discretion.
• This applies regardless of the item’s value, with a breakpoint of $185.18 — meaning packages worth less than that will typically default to the 54% rate.
• No retroactive refunds will be issued for entries filed before May 14th.
It’s likely that we’ll see a surge in shipping rates due to volume, as merchants may rush to source goods before tariffs potentially rise again after the 90-day window closes.
Other measures still in place during the 90-day pause:
• Section 301 Tariffs: In place for targeted Chinese goods, ranging from 7.5% to 25%.
• Section 232 Tariffs: Applied to steel (25%) and aluminum (10%) products, but exempt from the 10% reciprocal tariff.
• Additional Requirements for Brands: Licenses, certification, importer SSN, and origin of proof.
• Consumer Impact: Packages may be held in customs until additional duties and taxes are paid for as an extended result of the trade shifts and lack of resources at the U.S. border.
Clear by Swap Global mitigates your exposure to Trump’s Tariffs via B2B2C movement
Clear goods at fair market value via a UK -> US intra-company transfer. Through Clear by Swap Global, duties are assessed on the fair market value of goods - not on the final retail price (RRP).
Launching May 2025
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