By Esther Fung

The GOP's big tax-and-spending bill includes a provision to end the de minimis rule that currently allows packages worth $800 or less to be imported duty-free from countries other than China and Hong Kong.

In early May, the Trump administration ended the de minimis provision for goods made in China and Hong Kong. Under the bill passed Tuesday by the Senate, the exemption would end for other countries in June 2027.

Retailers such as Temu and Shein, as well as European brands like Sézane apparel and Diadora sneakers, have been selling their goods directly to U.S. consumers for years under the de minimis exemption. The rule change in May sharply reduced demand for packages shipped to the U.S. from China. FedEx said it reduced its Asia-to-U.S. capacity by 35% in the first week of May.

The International Mailers Advisory Group, which represents the mailing and shipping industry, said ending the tariff exemption for packages worth $800 or less could generate $40 billion in federal revenue-but that it could cost the government more than that to collect those duties.

"Importers, and eventually customers, pay the tariff," the group said.

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July 02, 2025 14:01 ET (18:01 GMT)

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