A US Postal worker delivers Amazon boxes outside of the New York Stock Exchange (NYSE) on October 11, 2018 in New York City.
Spencer Platt | Getty Images
President Donald Trump on Wednesday signed an executive order ending the de minimis trade loophole for low-value packages shipped from all countries.
The order, which takes effect August 29, will subject any shipments of imported goods into the U.S. worth $800 or less to duties, the White House said.
The move comes after Trump in May shuttered the de minimis loophole for goods from China and Hong Kong. A federal trade court on Monday declined to block Trump’s de minimis ban, even after an auto parts retailer argued the action was unlawful and threatened its business.
Use of the de minimis provision has exploded in recent years as online shopping has become more prevalent. Ultra-cheap online retailers such as Temu and Shein have used the loophole to ship packages to American shoppers directly from China duty-free.
The Trump administration has sought to close the loophole, calling it a “big scam” that hurts U.S. businesses. Officials have said de minimis facilitates shipments of fentanyl and other illicit substances on the claims that the packages are less likely to be inspected by customs agents.
The volume of de minimis shipments have skyrocketed to 309 million units so far this fiscal year, up from 115 million for all of last year, the White House said.
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