Trump’s New Tariff Effective 02 May 2025: The End of Duty-Free
- Freya Jane
- Director of Customer's Success
In a broad step that would change international logistics and e-commerce, President Trump signed an executive order terminating duty-free de minimis treatment for low-value goods entering the USA.
Beginning on May 2, 2025, this change will significantly impact the processing and taxation of small goods at the US borders, especially those originating from major sourcing hubs.
What is de minimis?
The de minimis rule allows goods under $800 to enter the United States duty-free and without a formal customs clearance. This accelerated process has helped millions of small packages, particularly those that were ordered online and delivered directly to customers.
What will change from 2 May 2025?
- The duty-free movement of goods will no longer apply to certain countries, particularly for shipments originating from or manufactured in China and Hong Kong.
- Postal consignments will be subject to 30% duty or $25 per item, increasing to $50 from 1 June 2025.
- Non-postal shipments (such as courier and express services) will be subject to full applicable duties.
- Carriers will be required to:
- Report shipment data to U.S. Customs and Border Protection (CBP)
- Maintain international carrier bonds
- Possibly submit formal entry declarations for certain packages
Learn more about Trump’s new tariff rule: Click here!
Tariff update timeline
The timeline below provides an up-to-date chronological overview of major tariff announcements, their implications, and ongoing negotiations.
April 10
Announced & Paused:
- EU pauses implementation of its consolidated tariff package for 90 days (next window: mid-July).
Implemented:
- U.S. postal tariff on Chinese goods raised to 120% of order value or flat $100.
April 9
Implemented:
- 84% tariff on Chinese goods replaces the previous 34%.
- 125% tariff on China, Hong Kong, and Macau-origin goods (total now 145%).
- Universal 10% tariff applied to all countries (excluding China/HK/Macau) for 90 days.
Announced:
- China to raise retaliatory tariffs to 84% (effective April 10).
- EU to phase retaliatory tariffs on U.S. goods: 25% from April 15, further increases on May 15 and December 1.
April 8
Announced:
- New 84% tariff on Chinese goods (effective April 9).
- Postal carve-out updated: 90% or $75 duty per Chinese package (effective May 2), increasing to $150 or 90% on June 1.
April 5
Implemented:
- 10% “Liberation Day” tariff on imports over $800 (exceptions apply).
April 4
Announced:
- China’s 34% retaliatory tariff on all U.S. goods (effective April 10).
- Export restrictions on rare earths and sanctions on 30 U.S. defense entities.
- End of de minimis exemption for China/HK/Macau (effective May 2).
April 3
Implemented:
- 25% tariff on imported automobiles and parts.
April 2
Announced:
- “Liberation Day” 10% universal tariff on all imports (effective April 5).
Announced:
- Expanded Reciprocal Tariff Plan for ~60 countries (17–49%, effective April 9).
March 20–26:
- The EU announced delays and updates to its retaliatory tariffs (postponed to mid-April).
- The US announced a 25% tariff on imported automobile parts (effective April 3).
March 2–13:
The US extended the de minimis exemption until systems are upgraded.
March 4: The US implemented 25% tariffs on Canadian/Mexican goods and 20% on Chinese goods.
March 6: These tariffs were suspended for Canada and Mexico.
March 12: The US implemented the global 25% steel/aluminum tariffs.
March 13: Canada expanded its retaliatory tariffs to cover 539 HS codes.
February 10–27:
The U.S. introduced a 25% global tariff on steel and aluminum (to be implemented March 12).
A Reciprocal Tariff Plan was announced (effective April 2).
New U.S. tariffs on Canadian, Mexican, and Chinese goods were announced, including a 20% increase on Chinese imports and reinstated 25% tariffs on Canadian and Mexican products.
China responded with 10–15% retaliatory tariffs.
Key impacts across industries
Trump’s changes to the tariff regulations mainly affect the supply chain and the e-commerce industry.
Supply chain challenges
Global supply chains are under enormous pressure when duty-free treatment is eliminated. Manufacturers and retailers who depend on direct-to-consumer business models, like Temu and Shein, are already adjusting to the new situation.
Businesses will need to rethink sourcing strategies, invest in customs reporting systems, and possibly shift to regional warehousing. The move will strain postal networks and push companies toward greater automation and supply chain localisation.
E-commerce challenges
The new tariff regulation adds more complexity for online retailers. Cost increases may result in higher prices for customers.
Furthermore, carriers are required to provide detailed shipment data to the US Customs and Border Protection (CBP) to ensure accurate duty payment.
Calculate tax & duty with iCustoms AI-powered Tariff Calculator!
Wrapping up
Trump’s decision to eliminate duty-free de minimis treatment marked a significant turning point in US trade policy. The change is likely to cause short-term disruptions, but it also signals a shift towards greater accountability and fair trading practices.
Businesses will need to be proactive and knowledgeable in order to succeed in this changing environment and prepare for the impact. Understanding these developments and making the necessary preparations can help you, whether you’re a manufacturer, retailer, or customer.
Stay ahead of the new rules and ensure accurate duty calculations with iCustoms’ AI-powered tariff calculator.
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