Former President Donald Trump has signed an executive order that eliminates a global tariff exemption used by consumers purchasing low-cost goods, effective August 29. He further exercised emergency presidential powers to move the implementation date up by several months. Now, it’s only one month away — a stark contrast from the previous deadline of July 2027.
The new rule expands upon previous measures that focused specifically on cheap plastic products coming from China and Hong Kong. Previously, under the de minimis exemption, goods less than $800 were allowed entry into the United States tariff-free. Trump’s recent directive doesn’t exempt Chinese goods from this. This change illustrates a more countrified strategy that affects products of all origins.
We’re assuming the forthcoming executive order will cover a wide range of topics. It excludes personal effects valued under $200 that Americans carry back with them when they return from trips overseas. Second, gifts of $100 or less are still not subject to the new rules. These exemptions help alleviate some of these burdens on travelers and on those wishing to give gifts.
In defending the action, the White House pointed to concerns about tariff evasion. Specifically, they explained that shippers are entering an incorrect first point of departure into the U.S. This circumvention has been connected to bigger problems, including the importation of lethal goods. According to the White House, the order aims “to deal with national emergencies and save American lives and businesses now.”
This is a consequential decision that will profoundly affect American consumers. Millions have come to depend on new online retailers like Shein and Temu for low-priced fast fashion and made-in-China household goods. Repeal of the exemption would increase prices for these basic, low-cost items. This proposed change would have serious consequences for budget-conscious shoppers across the country.
“Some shippers evade tariffs and funnel deadly synthetic opioids.” – The White House
The need for Trump’s executive order is demonstrated by still more troubling practices that threaten our nation’s security and trade. The administration has taken a hardline stance against perceived unfair competition and illegal trade activities, with this recent move representing a continuation of those policies.