The De Minimis Exemption: Why the Shipping Loophole May Soon End

The de minimis exemption allows foreign shipments valued at $800 or less to enter the U.S. without paying duties, tariffs or other taxes, and with minimal review and paperwork. Some companies, such as the e-commerce giants Shein and Temu, have built their entire business models around the rule, which critics have called an unfair tax loophole. We break down whether the de minimis exemption will survive as the U.S.-China trade war intensifies, and examine the signs that this shipping loophole might end sooner rather than later.