President Biden is proposing new limits on so-called "de minimis" rules, to curb the recent flood of low-priced, duty-free imports from Chinese retailers like Temu and Shein. 

De minimis rules in the U.S. date back to the 1930s, and were first conceived so that American tourists wouldn't have to pay duties on items they bought while abroad. Under the current limits, any imported items valued at $800 or less receive less scrutiny from U.S. Customs and Border Protection, and aren't subject to existing duties or tariffs. In recent years, Chinese e-commerce retailers have used those allowances to circumvent pricey tariffs, while shipping out millions of items from online orders in smaller lots, each valued under that $800 threshold. To wit, DCL Logistics president Dave Tu estimates that 50% of the 1.6 billion packages expected to ender the U.S. by the end of 2024 will have come from Shein and Temu alone.

Read More: EU Set to Target Shein, Temu With New Duties on Cheap Imports

On September 13, Biden issued a proposal that would make it so de minimis exemptions no longer cover any imports subject to current tariffs on a variety of low-value Chinese goods, as well as steel and aluminum products, solar panels, and washing machines. Those imports would also receive closer inspections from U.S. Customs agents. 

“American workers and businesses can outcompete anyone on a level playing field, but for too long, Chinese e-commerce platforms have skirted tariffs by abusing the de minimis exemption,” U.S. secretary of commerce Gina Raimondo said. “With these new actions, the Biden-Harris Administration is standing up for American consumers and cracking down on Chinese companies’ efforts to undercut American workers and businesses."

Biden's proposal is still subject to a public comment period from industry stakeholders before it can go into effect, in a process that will likely play out in the months to come.