Donald Trump’s ‘Big Beautiful Bill’ does away with de minimis exemption for impots from all countries

The de minimis exemption has played a major role in the rise of Chinese fast fashion brands like Shein and Temu. The exemption works like this: if an imported good has a value of less than $800, it is exempt from tariffs. The loophole has been around since the 1930s, but in recent years, it has given e-commerce brands that ship many smaller orders an advantage. “A retailer like Wal-Mart buys in bulk, and imports are much more than $800, so they pay tariffs,” Prof. Vivek Astvansh, told the Attitude with Arnie Arnesen podcast. “The exemption was helping individual shoppers, but hurting large businesses. It has already been removed for products shipped from China—which drives up the prices of fast fashion. In 2027, Donald Trump’s Big Beautiful Bill will remove the de minimis for imports from all countries. For the next two years, shoppers still have the option of buying tariff-free clothing from countries like Bangladesh or India. But come 2027, that will change.”