US Ends $800 Duty-Free Import Exemption for China on May 2

The U.S. is set to eliminate the de minimis exemption on low-value imports from China, effective May 2, 2025, resulting in higher prices for American consumers. This move is part of President Trump's broader strategy to counter trade deficits and concerns over synthetic opioids entering the U.S. market. China has retaliated by raising its tariffs on U.S. goods to 125%, highlighting the escalating trade tensions between the two nations. Additionally, U.S. exemptions for critical electronics from the tariff plan underscore the reliance of American tech companies on Chinese manufacturing. Experts believe this reliance complicates the U.S.'s efforts to bring manufacturing back home. The changes will significantly impact discount retailers like Temu and Shein, which must adapt to the new cost landscape to maintain their market presence.