It’s a turbulent time for global trade.
On April 2, 2025, President Donald J. Trump announced sweeping new tariffs targeting around 60 countries, with China at the center. In response, China raised its own tariffs on U.S. goods. The U.S. then hit back with a 125% tariff on Chinese imports—while temporarily holding back similar action on other nations.
And while the president has been relatively quiet on the topic of de minimis—the long-standing policy that allows goods under $800 to enter the U.S. without duty—new guidance from the White House signals big change. As of early April, de minimis exemptions for goods from China are ending.
So, what does this mean for your business? And how can you stay ahead?
Let’s break it down.
What Are the China Tariffs?
As of April 9, 2025, goods from China and Hong Kong face a steep tariff of 125% or more.
Here’s how we got here:
- February 4, 2025: The U.S. introduced a 10% tariff on Chinese and Hong Kong imports. This was in addition to existing Section 301 tariffs. Importantly, there was no exclusion process and no drawback option offered.
- March 4, 2025: Just one month later, the tariff was doubled to 20%. This applied to any goods entering or being withdrawn from U.S. warehouses from 12:01 a.m. ET that day.
These incremental increases have built up to the current 125% rate, marking a major escalation in the U.S.–China trade conflict.
Reciprocal Tariffs Implemented April 9
The tariff pressure ramped up fast in April.
- April 2, 2025: President Trump announced a new 34% reciprocal tariff on Chinese imports, set to take effect April 9. This included a 10% baseline tariff that began applying to all countries as of April 5.
- April 8, 2025: After China hit back with retaliatory tariffs on U.S. goods, the U.S. responded by increasing the planned 34% tariff to 84%.
- April 9, 2025: That same day, Trump raised the tariff on China again—to a staggering 125%, effective immediately.
Some goods are excluded from the reciprocal tariff. These include:
- Items protected under 50 USC 1702(b)
- Bullion
- Certain categories like copper, pharmaceuticals, semiconductors, and lumber
- Energy and specific minerals not available in the U.S.
- Steel, aluminum, autos, and auto parts already covered under Section 232 (or expected to be)
One important note: Drawback is allowed for these additional tariffs, and U.S. Customs and Border Protection (CBP) is actively releasing updates and guidance.
What’s Changing with De Minimis Imports from China?
Starting May 2, 2025, the U.S. is ending de minimis exemptions for goods coming from China and Hong Kong.
Right now, the de minimis rule—under 19 U.S.C. § 1321(a)(2)(C)—lets one shipment per person, per day, valued at $800 or less enter the U.S. without paying duty or import tax.
That benefit is going away specifically for China and Hong Kong. For now, it will still apply to other countries—but that could change in the future.
New Tariff and Postal Fees for De Minimis Imports by Mail
Starting May 2, 2025, goods from China and Hong Kong valued at $800 or less and arriving by international mail will face new charges.
- A 90% ad valorem duty will apply—meaning 90% of the item’s value will be charged as duty. This rate was originally set at 30%, but it was increased on April 8.
- In addition, each low-value postal shipment will face a $75 flat postal fee starting May 2. That fee will increase to $150 on June 1, 2025.
These postal fees were originally set lower—$25 and $50—but were raised under an executive order issued on April 8.
De Minimis Eliminated for Other International Shipments
It’s not just postal shipments being affected.
According to a White House fact sheet from April 2, the U.S. is also eliminating the de minimis exemption for Chinese goods shipped through private carriers (like FedEx, UPS, DHL, etc.).
Starting May 2, 2025, at 12:01 a.m. ET, all applicable duties will apply to de minimis shipments from China and Hong Kong, regardless of how they arrive.
And as mentioned earlier, the April 8 executive order increased those duty rates even further.
De Minimis Policy Has Been in Flux Since February
The de minimis rule for China and Hong Kong has been anything but stable in 2025.
- On February 1, President Trump announced that the U.S. would eliminate de minimis for Chinese and Hong Kong goods, effective February 4—with no grace period for shipments already in transit.
- The sudden shift overwhelmed U.S. Customs and caused the U.S. Postal Service (USPS) to temporarily stop accepting packages from China. Businesses rushed to adapt.
- Just one day later, on February 5, Trump reinstated de minimis for China and Hong Kong to give the Commerce Department and CBP time to prepare systems for handling the new tariffs.
Now, as of April 9, the de minimis exemption for China and Hong Kong is set to officially end on May 2.
For the time being, duty-free low-value imports from other countries are still allowed—but both President Trump and Congress have signaled that broader changes to the policy could be on the horizon.
How to Import Low-Value Products from China Under the New Rules
Starting May 2, 2025, importing low-value goods from China and Hong Kong is going to get more complicated.
One major change: Entry Type 86 (used for low-value, duty-free shipments) will no longer be accepted for Chinese and Hong Kong imports—including those sent by mail.
This means higher costs and longer shipping times. Importers and customs filers will now need to:
- Submit a formal or informal entry for each shipment
- Pay all applicable duties, taxes, and fees
Here’s how it breaks down:
- Formal Entry (Type 01): Required for shipments valued over $2,500
- Informal Entry (Type 11): Likely the best option for most low-value shipments from China and Hong Kong, especially for low-risk goods (like items not subject to quotas or special duties)
Planning ahead and understanding which entry type to use will be key to avoiding delays and unexpected costs.
Requirements for Informal Entry (Entry Type 11)
Entry Type 11 is a more simplified process than formal entry—but it’s still a big step up from the de minimis process many businesses are used to.
The biggest change? Businesses must now complete CBP Form 7501, which must be submitted electronically through the CBP’s ACE (Automated Commercial Environment) system.
“Filling out CBP Form 7501 might seem like just another form—but for businesses used to de minimis, it’s a whole new layer of admin that slows things down and eats up time. It’s exactly the kind of manual task we exist to eliminate.” Gareth Kobrin, CEO at Yonda.
What You’ll Need for Entry Type 11
CBP Form 7501 requires several pieces of key information:
- Importer and entry details
- Shipment and transportation data
- Product info and classification, including the 10-digit Harmonized Tariff Schedule (HTS) code for each item
- Valuation and duty calculations (based on transaction value, including packing, commissions, royalties, etc.)
- Declarations and certifications
Also important: Estimated duties must be paid within 10 days of the shipment’s release.
The Challenges
One of the toughest parts of Entry Type 11 is getting the HTS codes right. Using the wrong 10-digit code can mean incorrect duties, delays at customs, or even fines.
Many businesses that relied on de minimis shipments haven’t had to deal with product classification at this level. Their systems may not be set up for it—and adapting quickly will be essential to avoid disruptions.
How to Stay Compliant with the New De Minimis Rule Changes
With recent tariff hikes and the end of de minimis for China and Hong Kong, international shipping just got a lot more complicated.
“You’re not just dealing with one tariff anymore—you’re dealing with layers. Standard duty rates, Section 301 tariffs, a 20% blanket duty, and now a steep reciprocal tariff. That’s four overlapping charges on every shipment from China. It’s a compliance minefield, and businesses can’t afford to guess their way through it.” - Gareth Kobrin, CEO at Yonda. For businesses, that means navigating a constantly shifting landscape of compliance and classification requirements.
To keep up, many businesses are turning to automation. Tools that calculate duties in real time and assign accurate 10-digit HTS codes—required under Entry Type 11—are becoming essential.
With more changes likely ahead, staying informed and proactive is key. In this section, we’ll break down what businesses can do now to remain compliant and keep cross-border operations moving smoothly.