ISTANBUL 

The US officially ended the de minimis exemption Friday for low-value imports from China and Hong Kong, marking the latest escalation in the US-China trade war.

The exemption, previously allowing shipments valued under $800 to enter the US duty-free, was revoked, following an executive order signed by President Donald Trump on April 2.

The White House said the move targets the illicit flow of synthetic opioids such as fentanyl and closes a "loophole" that Trump described as a “scam” harming US small businesses.

“It’s a big scam going on against our country, against really small businesses. And we’ve ended, we put an end to it,” Trump said at a Cabinet meeting earlier this week.

Imports originating from China and Hong Kong will now be subjected to tariffs and will be liable for all relevant duties.

The decision is expected to heavily affect e-commerce platforms such as Shein, Temu and third-party Amazon sellers who previously used the loophole to avoid duties.

Goods from China could now face tariffs of up to 145%.

Trade experts told CBS News that the measure also places a new burden on US Customs and Border Protection (CBP), which must now inspect millions more packages daily, potentially resulting in shipment delays and administrative challenges.

"The way we shop online will never be the same," Ram Ben Tzion, CEO of Publican, told the news outlet.

Section 321 of the Tariff Act of 1930 permits US imports below a de minimis threshold to enter without tariffs, fees or taxes. In 2016, Congress increased the threshold from $200 to $800 per shipment.

Chinese exports of low-value individual parcels surged from $5.3 billion in 2018 to $66 billion in 2023, according to a Congressional Research Service report.