De Minimis Tariffs Raised
In response to tariff retaliation from China, the Trump Administration has increased the duty rates on Chinese goods that previously qualified for de minimis duty free treatment.
Background
Beginning on February 1, 2025, President Trump signed Executive Order 14195 titled “Imposing Duties to Address the Synthetic Opioid Supply Chain in the People’s Republic of China.” In addition to imposing an additional duty on goods from China, Executive Order 14195 eliminated de minimis duty free treatment under 321(a)(2)(C) of the Tariff Act of 1930 for qualifying goods under $800.
At the time, procedures for collecting duties on de minimis goods from China did not exist, which led to confusion and delays. For that reason, on February 5, 2025, Executive Order 14200 suspended the elimination of the de minimis exception until further notice.
On April 2, 2025 President Trump signed an executive order finally eliminating de minimis duty free treatment on goods from China. On April 8, 2025, President Trump signed an executive order which increases the duties applicable to Chinese de minimis imports. This April 8 Executive Order is a response to increased tariffs imposed by China.
Since this writing, because China has levied even more tariffs, prompting an additional executive order that increases the rates yet again on April 10, 2025.
Rules For De Minimis Imports From China
First, all products of China sent from China through the international postal network that would otherwise qualify as de minimis will be subject to the tariffs in the April 2 Executive Order, modified by the April 8 Executive order. The duties on these postal items will be in lieu of other duties and tariffs, including Section 301, the general duty rate, and the 20% Fentanyl Tariff, meaning that only the tariff in the April 8 Executive Order will apply. Postal carriers are required to collect the duties and remit them to CBP. In addition, carriers will be required to maintain a bond sufficient to ensure payment of these duties.
Second, all other products of China will be subject to the 20% Fentanyl Tariff, regardless of whether they are valued at less than $800. The duty applies to imports on or after 12:01 a.m. on May 2, 2025.
Raised De Minimis Tariff Rates
As stated above, postal carriers must collect the duties and remit them to CBP. There are two prescribed methods for collection:
- ad valorem duty on each postal item containing goods;
- flat duty on each postal item containing goods.
As of the April 8 Executive Order, the 30% ad valorem duty on postal items has been raised to 90%. As of the April 10 Executive Order, the rate has been raised from 90% to 120%. The $25 flat duty has been raised to $75. As of the April 10 Executive Order, the $75 flat duty has been raised to $100. Both the 120% ad valorem duty, as well as the $10 flat duty come into effect on or after 12:01 a.m. on May 2, 2025. For goods imported on or after 12:01 a.m. on June 1, 2025, the flat duty will be raised from $100 to $200.
Conclusion
As of April 10, 2025, this article has been updated according to additional guidance that was published.
As new tariff regulations continue to evolve, navigating these changes requires experienced legal counsel. At Liang + Mooney, PLLC, our seasoned tariff lawyers can answer your questions and concerns with sophisticated legal solutions. If you seek strategic counsel and insight into which tariffs apply to your operations, we invite you to contact us to schedule a consultation.