Trump targets de minimis exemptions to combat opioid crisis

Trump targets de minimis exemptions to combat opioid crisis
Geopolitics
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Gregory May, Consul General | U.S. Embassy in Hong Kong and Macau

President Donald J. Trump has signed an Executive Order to eliminate duty-free de minimis treatment for low-value imports from China. This decision aims to address the ongoing health emergency caused by synthetic opioids entering the United States. The Secretary of Commerce confirmed that systems are in place to collect tariff revenue. As a result, starting on May 2, 2025, goods imported through channels other than the international postal network valued at $800 or less from China and Hong Kong will be taxed under the new regulations.

Postal items valued at $800 or less will face a duty rate of 30% of their value or a $25 charge per item, which will increase to $50 after June 1, 2025. Carriers must report shipment details to U.S. Customs and Border Protection (CBP) and ensure duty payments.

CBP is already processing over 4 million de minimis shipments daily. Many shipments reportedly contain synthetic opioids hidden by Chinese-based shippers using deceptive practices. These activities are attributed to incentives from the Chinese Communist Party (CCP) to PRC chemical companies exporting fentanyl to the U.S.

Last fiscal year, CBP seized over 21,000 pounds of fentanyl at U.S. borders, but officials believe only a fraction of the smuggled amounts are intercepted. Each year, fentanyl overdoses cause over 75,000 American deaths, more than the total American casualties in the Vietnam War.

President Trump, fulfilling campaign promises, is acting to control borders and reduce drug trafficking. He previously implemented 20% tariffs on China to combat synthetic opioid influxes.

"Carriers transporting these postal items must report shipment details to U.S. Customs and Border Protection (CBP), maintain an international carrier bond to ensure duty payment, and remit duties to CBP on a set schedule."

"The Secretary of Commerce will submit a report within 90 days assessing the Order’s impact and considering whether to extend these rules to packages from Macau."

"The Chinese Communist Party (CCP), which exerts ultimate control over the government and enterprises of the PRC, has subsidized and otherwise incentivized PRC chemical companies to export fentanyl and related precursor chemicals that are used to produce synthetic opioids sold illicitly in the United States."

"Upon returning to office, President Trump immediately took action to seal the border and crack down on drug trafficking."

"We will not rest until we have ended the drug addiction crisis."