On April 2, 2025, President Donald J. Trump signed an Executive Order eliminating duty-free de minimis treatment for low-value imports from China and Hong Kong. This decision is part of a broader strategy to combat the synthetic opioid crisis in the United States, exacerbated by the illicit flow of substances like fentanyl through deceptive shipping practices. The changes will take effect on May 2, 2025, requiring all goods valued at or under $800 that typically qualify for the de minimis exemption to be subject to tariffs, with specific rates for postal items.

The Executive Order addresses challenges faced by U.S. Customs and Border Protection (CBP) with the high volume of de minimis shipments, which exceed 4 million processed daily. Many of these shipments are reportedly used by Chinese companies to conceal illicit drugs, exploiting the exemption to bypass strict import regulations imposed by the U.S. In the previous fiscal year, CBP seized over 21,000 pounds of fentanyl, underscoring the significant threat posed by these substances, which lead to tens of thousands of overdose deaths annually in the U.S.

This initiative aligns with President Trump’s commitment to tackling drug trafficking and aims to fulfill promises made during his campaign. By increasing tariffs on imports from China, the administration seeks to reduce the flow of synthetic opioids into the country and enhance border security. The Secretary of Commerce is expected to assess the impact of these changes within 90 days, with considerations for extending similar rules to packages from Macau.

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