Trump Ends De Minimis Loophole to Block China’s Opioid Pipeline
President Donald Trump has signed an executive order that officially ends duty-free de minimis treatment for low-value imports from China and Hong Kong in a move aimed at curtailing the alleged illicit flow of synthetic opioids into the US.
Taking effect on May 2, 2025, at 12:01 a.m. EDT, this policy shift closes a longstanding loophole that allowed packages valued at or under $800 to enter the country without incurring standard duties.
Now, the policy imposes all applicable duties on imports below the 800-dollar threshold, effectively dismantling the previous duty-free advantage for shipments from China and Hong Kong.
Administration officials emphasize that this measure is a direct response to “the ongoing health emergency posed by the illicit flow of synthetic opioids.” By revoking the de minimis exemption, the president contends he is delivering on a key promise to “seal the border and stop the influx of deadly drugs,” a pledge he made during his election campaigns.
For postal shipments, the new rules establish a duty rate of 30% of the item’s value or $25 per item—rising to $50 after June 1, 2025—in place of any other tariffs. In addition, carriers handling these parcels must provide detailed shipment records to US Customs and post an international carrier bond to secure compliance.
Looking ahead, officials will assess whether other countries should face the same regulations.
The administration underscores that this policy is part of a broader strategy to combat what it calls China’s deceptive shipping practices. Citing data indicating that the US previously processed more than 4 million de minimis-qualifying shipments each day, government officials argue that Chinese enterprises exploit the low-value exemption by concealing illicit substances, frequently labeled under fraudulent invoices or disguised as benign consumer goods.
According to the White House, the Chinese Communist Party exerts “ultimate control over the government and enterprises of the PRC,” subsidizing chemical companies that export synthetic opioids and precursor chemicals. In the past fiscal year alone, US Customs seized more than 21,000 pounds of fentanyl, a quantity potentially lethal to billions of people.
Observers note that the crackdown on de minimis imports will also have economic repercussions. While Shein is privately held, e-commerce giants such as Amazon and direct-from-China platforms like Temu may be significantly affected. More locally, names such as Shopify (TSX: SHOP) have fallen in morning trading following the announcement of the exception being eliminated.
Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
