Trump Eliminates China, Hong Kong Trade Exemptions to Combat Illicit Substance Imports

Trump Eliminates China, Hong Kong Trade Exemptions to Combat Illicit Substance Imports


President Donald Trump eliminated trade exemptions with China and Hong Kong this week to combat illicit substance imports.

As part of his sweeping executive orders instituting tariffs on various nations this week, the president eliminated exemptions to address deceptive shipping practices from the People’s Republic of China (PRC) and Hong Kong. Recognizing China’s role in the ongoing U.S. opioid crisis, the president suspended duty-free de minimis treatment for shipments valued at $800 or less.

Under “duty-free de minimis,” shipments could enter the United States free of import duties or taxes so long as they were valued at $800 or less. The Trump administration charged that the PRC exploited this exemption by breaking large shipments into smaller pieces for the purpose of concealing illicit substances.

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