Trump ends de minimis tariff exemption, sets copper and Brazil levies
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President Trump in the Oval Office. Photo: Chip Somodevilla/Getty Images
President Trump on Wednesday took another sweeping series of tariff actions, formally imposing new levies on copper and Brazil and revoking a global exemption on tariffs for packages worth less than $800.
Why it matters: Ending the so-called de minimis exemption will make low-price goods from around the world more expensive for American consumers.
- The suspension was already in place for China and had a serious impact on major Chinese retailers like Shein and Temu.
- The copper levy will increase prices substantially on one of the most vital metals to the American economy.
- The Brazil tariff threatens American staples like coffee and orange juice.
The big picture: After months of on-off trade policy, Trump is barreling firmly ahead with this Friday's deadline to broadly raise, or impose, tariffs on key goods and major allies.
- The so-called TACO trade ("Trump Always Chickens Out") is not in evidence here, with the administration sticking firmly so far to the August 1 tariff plan.
De minimis exemption
The de minimis exemption will end on August 29, the White House said.
Zoom in: For goods shipped through the international postal system, packages will be taxed in one of two ways.
- "Ad valorem duty": a duty "equal to the effective tariff rate imposed under the International Emergency Economic Powers Act (IEEPA) that is applicable to the country of origin of the product."
- Or, "specific duty": Ranging from $80 per item to $200 per item, depending on the effective IEEPA tariff rate "applicable to the country of origin of the product."
After six months, however, "all applicable shipments must comply with the ad valorem duty methodology. "
American travelers can still "bring back up to $200 in personal items and individuals can continue to receive bona fide gifts valued at $100 or less duty-free," however.
Context: The "de minimis" loophole was an important protection for businesses overseas and U.S. customers, exempting low-value packages from tariffs.
- Critics of the exemption say it has hurt U.S. businesses, such as fashion retailer Forever 21, which began liquidating its U.S. stores after partly attributing the rise of Shein and Temu to its downfall.
- Supporters, however, say that U.S. consumers will suffer from higher prices with the elimination of tariff-free shipments.
Brazil tariffs
Of note: On Wednesday Trump also finalized new 50% tariffs for Brazil as of Friday.
- In an executive order, Trump defended his ally, former president Jair Bolsonaro, accusing the current Brazilian government of "politically motivated persecution, intimidation, harassment, censorship, and prosecution" of Bolsonaro and "thousands of his supporters."
Copper tariffs
By the numbers: Trump's order finalizing the new 50% tariff on copper imports caused the metal to plunge, with futures dropping almost 20%.
- That would represent the biggest single-day decline in decades.
Go deeper: Trump says U.S. strikes trade deal with South Korea
Editor's note: This article has been updated with new details throughout.
