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| India's aviation may not suffer |
Remember, in one tweet, Trump says, "We do little business with India."
Then contradicts himself in another tweet: "There is a massive trade deficit between them."
Effective August 29, the new rule will eliminate tariff-free entry for low-value goods, disrupting billions in cross-border sales and affecting millions of US online shoppers.
What’s the latest
The executive order suspends the long-standing 'de minimis' exemption that allowed imports under $800 to enter duty-free.
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| I wish the US could spare the world 🌎 |
The policy apparently aims to close trade loopholes and curb illegal smuggling, including fentanyl-laced drugs, often hidden in low-value shipments.
Until a complete overhaul of customs processes is implemented, a temporary flat-rate duty of $80 to $200 per item will apply.
What it means
The policy shift marks one of the most aggressive efforts to rein in China’s e-commerce dominance in the US market. Shein, Temu, and other platforms have leveraged low-cost logistics and duty exemptions to flood Western markets.
The move seems to be designed to close loopholes that have enabled foreign sellers to avoid tariffs, evade product safety regulations, and — in some cases — smuggle illicit drugs such as fentanyl. The administration cited national emergencies related to drug trafficking, unfair trade practices, and persistent trade deficits as the legal basis for invoking the change.
“Many shippers go to great lengths to hide illicit substances or misrepresent the origin and contents of packages,” the executive order said, adding that the risks are exceptionally high for low-value shipments that previously qualified for duty-free treatment.
US consumers, long accustomed to fast and cheap global shipping, may face price hikes and delays.
De minimis rule under the lens
The 'de minimis' rule has been under scrutiny for years, especially as Chinese e-commerce platforms rapidly expanded in the West. Critics argue it allowed foreign sellers to undercut domestic firms by skirting taxes and regulatory checks.
The European Union has faced similar challenges. In 2024, the EU proposed a €2 flat customs fee on all parcels under €150 and a reduced €0.50 fee for items routed through local warehouses.
