President Trump has signed an Executive Order that suspends the duty-free de minimis tariff exemption for low-value shipments from all countries. The action gives Homeland Security Secretary Kristi Noem authority to address what officials describe as a loophole used to avoid tariffs and facilitate the smuggling of synthetic opioids, including fentanyl, into the United States.
“For decades, bad actors have taken advantage of America’s de minimis process by smuggling in deadly narcotics, harmful products, and other contraband in hidden products,” said Department of Homeland Security Assistant Secretary Tricia McLaughlin. “This loophole led to the death of thousands of Americans, fueled the opioid crisis, and harmed U.S. consumers. This decision to end de minimis will save American lives, increase revenue, and protect the American consumer and entrepreneur.”
The de minimis provision allowed imported goods valued at $800 or less to enter the country without paying tariff duties. Officials say this system enabled some countries to send large quantities of inexpensive goods that competed with domestic manufacturers and resulted in job losses. Criminal organizations reportedly used this channel to move drugs and other illegal items into the country.
According to data cited by officials, de minimis shipments rose significantly over ten years—from 134 million in 2015 to more than 1.36 billion in 2024. These shipments made up 90% of all cargo seizures in fiscal year 2024. Additionally, authorities reported that 98% of narcotics seized from cargo were associated with de minimis shipments, along with 97% of counterfeit items.
With the Executive Order now in effect, U.S. Customs and Border Protection will begin enforcing tariffs on these shipments as part of efforts to combat smuggling activities involving synthetic opioids and counterfeit goods.
