President Donald Trump’s administration has reduced for at least 90 days the tariff rate on lower-value imports from China and Hong Kong – a move some promotional products importers welcomed while at the same time saying it doesn’t negate marketplace uncertainty or fully relieve financial anchors that the levies place on such shipments.

On May 2, the White House issued an executive order that eliminated the de minimis exemption for imports coming from China and Hong Kong. The exemption had allowed articles that have a retail value of $800 or less and are imported by one person in one day to enter the United States tariff-free.

With the elimination, such shipments became subject to import duties and more formal customs processing. However, following trade talks between the U.S. and China in Switzerland the weekend of May 10/11, the U.S. lowered the tariff rates that would now apply to these formerly duty-free imports.

Originally, the $800-and-below shipments sent through the international postal network (Universal Postal Union) were subject to a tariff of 120% of the value of the postal item containing goods or a $100 per shipment fee – a charge that was to rise to $200 for goods entered for consumption come June 1.

However, under the change that became effective May 14, such lower-value imports sent through the international postal network will be subject to a 54% tariff rate – or a $100 per import fee, with the rise to $200 now sidelined.

“These duties are in lieu of any other duties to which such shipments would otherwise be subject, including the 20% tariffs imposed in response to concerns about fentanyl and illegal immigration, most-favored nation duties established in the HTSUS, and Section 301 tariffs,” wrote attorneys at Sandler, Travis & Rosenberg, a firm of international trade lawyers and consultants. “They also apply to subject shipments even if they are shipped from China or Hong Kong to another country and then transported to the U.S.”

ASI Research Shows Tariff Impacts, Price Increases Continued in April https://t.co/UiDBbJfTKa

— Chris Ruvo (@ChrisR_ASI) May 15, 2025

Meanwhile, if products originating in China that formerly qualified for de minimis are coming through carriers not part of the Universal Postal Union (think UPS, FedEx, DHL), then the shipments are subject to all duties applicable to items coming from that nation. These include a 30% tariff rate Trump currently has in place for at least 90 days on China-origin products, as well as Section 301 tariffs the president implemented during his first term in the White House.

Sandler, Travis & Rosenberg noted the lower-value shipments sent through carriers outside the international postal network are also subject to other taxes and fees.

Have questions about #tariffs, customs, importing, etc.? This Q&A with a logistics expert might help. It answers questions about the mechanics of tariffs and customs clearance, including how tariffs are applied and what you have to do to be in compliance. https://t.co/0i8MB52SJi

— Chris Ruvo (@ChrisR_ASI) April 28, 2025

Lenny Feldman, a managing partner at Sandler, Travis & Rosenberg, told ASI Media that importers need to “restructure their supply chains appropriately to ensure they are compliant” with the new rules on $800-and-below shipments. This includes designating a valid party to serve as an importer of record, classifying incoming products under the appropriate Harmonized Tariff Schedule codes and providing an accurate declared value of the shipment.

The lower tariff rates on shipments that previously qualified for the de minimis exemption came as the Trump administration more broadly decided to drop the tariff rate it had imposed on most China-made imports in 2025 from 145% to 30%. Both that levy change and the rate reduction on lower-value shipments are in effect for at least 90 days, the government said.

Promo Weighs In

Promo pros’ reaction to the tariff rate reduction on lower-value imports was mixed.

Chris Babiash, president/CEO of distributor Booshie Inc., viewed the change in a generally positive light. His company imports directly from China for certain team-related and project-based orders, and about 90% of those orders are under $800, he said. Under the elevated rates that had been in place for about 12 days, Babiash said such business would not be sustainable. The lower rate makes the commerce more feasible again.

“We’ll maximize the shipments based on the minims total of $799 and pay the $100 fee,” he said.

$1.36 Billion
Value of imported shipments claiming the de minimis exemption in fiscal year 2024.(U.S. Customs and Border Protection)

Tom Goos, president and CEO of Counselor Best Place to Work distributor Image Source (asi/230121), said the tariff reduction on lower-value imports “makes an impact and creates viability again for these small import orders.” Still, he added, the $100 fee or other current applicable tariff rates are a significant cost. “We are moving in the right direction with the reduced tariff, but this still creates a difficult financial burden on us and our customers,” Goos said.

He shared that Image Source is actively negotiating program pricing and production time for some key programs that previously would have fallen in the de minimis exemption import category. The firm has also changed shipping methods and production times to “help reduce costs and still make these programs worthwhile for the customer,” Goos said.

“I hope that in the next 90 days a permanent tariff structure is enacted and that we can all then adjust to those parameters.” Josh King, You Name It Specialties (asi/365123)

Josh King, CEO of Counselor Best Place to Work distributor You Name It Specialties (YNIS, asi/365123), said it will be hard to determine in the short term what temporary reduction of the de minimis import cost increases will have on the promo industry and commerce more broadly.

“Business owners are not able to develop plans based on temporary cost structures and having to pivot on a weekly/daily basis based on sound bites does not allow for prudent business planning,” King told ASI Media.

He said that the removal of the exception was “momentous” for importers of lower-value goods, which includes YNIS. The firm has already made business adjustments based on the suspended higher tariff rates on lower-value imports; it’s not about to shift gears again just yet, as uncertainty persists, King stated.

“We are moving in the right direction with the reduced tariff but this still creates a difficult financial burden on us and our customers.” Tom Goos, Image Source (asi/230121)

“Until there is more clarity on what the tariff future will look like,” said King, “it is my belief that only stop-gap measures will be taken. Uncertainty is most damaging to commerce and leads to paralysis in decision-making, purchasing and ultimately hiring. I hope that in the next 90 days a permanent tariff structure is enacted and that we can all then adjust to those parameters.”

Imported products originating from countries outside of China and Hong Kong remain eligible for the duty-free de minimis exemption. The White House has expressed interest in eventually eliminating the exemption completely for all imports once customs has the bandwidth to deal with the increase in processing demand that will come with such a move.

To be sure, some promotional product professionals would welcome such a move. Certain branded merch importers that bring products in bulk to the U.S. have said the de minimis exemption provides an unfair advantage to those who leverage it, adding that it's unjust to higher-volume importers.

“I’m very much in favor of its removal,” Jeff Schrimmer, owner of the supplier Brighter Promotions (asi/42016), has said of the de minimis exemption. “It rankles my mind that I, as an importer importing 10,000 or 20,000 pieces of an item, am supposed to pay tariffs but then somebody’s able to buy $800 worth and avoid all the tariffs and duties. The exemption hurts those businesses that are actually investing in the U.S. with distribution centers with finishing products and an employee base here.”

The majority of promotional products sold in the United States are manufactured abroad. China is the nation from which promo most heavily sources.