Donald Trump has signed an executive order to shut down a trade loophole known as “de minimis” that has allowed low-value packages from China and Hong Kong to enter the US free of duties.
The move appears to be a massive blow to fast-fashion companies such as China-based Shein and Temu, which managed to rapidly expand in the US through the almost century-old de minimis rule. This tariff exemption will end on 2 May, the White House said on Wednesday.
