Tariff Talk

Effective May 2, the landscape for low-value imports from China will undergo a significant shift. The fast, customs-light treatment under de minimis will come to an end for shipments originating from China and Hong Kong, with the most pronounced impact felt by e-commerce, direct-to-consumer retailers like TEMU, SHEIN, and others.

Following the Executive Order issued on April 2, low-value postal shipments will now require more formal entry types with U.S. Customs and will be subject to the same tariffs as high-value shipments (those over US$800), including reciprocal tariffs up to 125%.

Many importers already submit informal or formal entries for low-value goods shipped via air or ocean freight, so the main change for these shipments will be the increased tariff exposure. In response to the new regulations, DHL has announced it will suspend service to the U.S. for shipments valued at US$800 or less.

Postal shipments, however, will experience the greatest procedural change. To align with the new order, these shipments will be assessed a flat fee—either 120% of the shipment’s value or $100 per shipment, whichever is greater. This fee will increase to $200 per shipment starting June 1. Postal carriers will be allowed to update their collection methods once per month.

OCEANAIR is closely monitoring changes to de minimis policy and other trade developments. For questions or further guidance, please contact your OCEANAIR sales representative or email us at compliance@oceanair.net.