• Trump suspends the de minimis exemption for low-value imports effective August 29.
• Packages valued at $800 or less will now incur applicable duties regardless of origin.
• The move aims to prevent the evasion of tariffs and combat illegal drug imports.
• The previous exemption notably benefited shoppers from retailers like Shein and Temu.
• This action follows Trump's earlier suspension of the exemption for imports from China and Hong Kong.

On July 30, President Trump signed an executive order suspending the de minimis exemption, which allowed shipments valued at $800 or less to enter the U.S. tax-free. This change, effective August 29, aims to close what the White House termed a "catastrophic loophole" leveraged to "evade tariffs and funnel deadly synthetic opioids" into the country, according to CBS News and BBC.

This executive order broadens prior restrictions that targeted low-cost imports specifically from China and Hong Kong, which had previously made up a significant portion of goods entering without tariffs. Now, it extends to all countries, impacting retailers like Shein and Temu who have catered to U.S. consumers through such exemptions, reports Reuters and BBC.

As per the new regulations, shipments will now face the same tariff rates as traditional goods, which the Trump administration asserts is essential for national security and economic integrity. The White House noted that those "evading duties" had been falsely declaring the country of origin to sidestep tariffs, according to CBS News and BBC.