Fact Sheet: President Donald J. Trump Closes De Minimis Exemptions to Combat China’s Role in America’s Synthetic Opioid Crisis

April 2, 2025

Fact Sheets

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Action Summary

Purpose: Eliminate duty-free de minimis exemptions on low-value imports from China to counter the illicit flow of synthetic opioids into the U.S.
Implementation Date: Effective May 2, 2025 at 12:01 a.m. EDT, after the Secretary of Commerce confirms adequate tariff revenue collection systems.
Tariff Modifications:
- Imports valued at or under $800 via non-postal routes now subject to all applicable duties.
- International postal items will incur a duty of 30% of value or a flat rate of $25 per item (rising to $50 after June 1, 2025).
Enforcement & Reporting:
- Carriers must report shipment details and maintain bonds ensuring duty payments.
- CBP retains authority to require formal entry for postal packages.
Assessment & Future Consideration: Secretary of Commerce to submit a report within 90 days regarding the order’s impact and the possibility to extend measures to packages from Macau.
Combating Illicit Shipping Practices: Targets deceptive methods by Chinese shippers who hide synthetic opioids and precursor chemicals using false invoices and fraudulent packaging.
Opioid Crisis Context: Highlights the significant role of fentanyl, with CBP processing over 4 million de minimis shipments daily and previous seizures of over 21,000 pounds of fentanyl, underscoring the fatal toll of synthetic opioids on American lives.
Political Mandate: Fulfills President Trump’s campaign promise to seal the border and halt the drug addiction crisis, complementing earlier measures such as imposing 20% tariffs on China’s imports.

Risks & Considerations

The Executive Order eliminating duty-free de minimis treatment for low-value imports from China could lead to increased costs for research materials and equipment sourced from China. This may impact Vanderbilt University’s research programs that rely on such imports.
There is a potential risk of disruption in the supply chain for educational and research materials, as the new tariffs and duties could delay shipments and increase administrative burdens related to customs clearance.
The focus on combating synthetic opioids may lead to increased scrutiny and regulation of chemical imports, which could affect research projects involving chemical substances, particularly those related to medical and pharmaceutical studies.
Vanderbilt University may need to reassess its procurement strategies and explore alternative suppliers to mitigate the impact of increased tariffs and potential supply chain disruptions.

Impacted Programs

Vanderbilt’s Research Programs that rely on imported materials from China may face increased costs and potential delays, necessitating adjustments in budgeting and project timelines.
The Department of Chemistry and Pharmacology may need to navigate new regulatory requirements and ensure compliance with any changes in the importation of chemical substances for research purposes.
Vanderbilt’s Procurement Office will play a crucial role in identifying alternative suppliers and negotiating new contracts to minimize the financial impact of the tariffs.

Financial Impact

The imposition of tariffs and duties on low-value imports from China could lead to increased operational costs for Vanderbilt University, particularly in research and development areas that depend on imported materials.
There may be a need for reallocation of funds within research budgets to accommodate the additional costs associated with tariffs and potential supply chain disruptions.
Vanderbilt University might explore opportunities for collaboration with domestic suppliers to reduce reliance on imports and mitigate the financial impact of the Executive Order.

Relevance Score: 3 (The order presents moderate risks involving compliance and potential financial impacts on research programs.)

Key Actions

Vanderbilt’s Office of Federal Relations should monitor the impact of the executive order on research and educational materials imported from China. This includes assessing any potential increase in costs due to the removal of the de minimis exemption and preparing to adjust budgets accordingly.
The Vanderbilt University Medical Center should consider collaborating with federal agencies to contribute research and expertise in combating the opioid crisis. This could involve developing new treatment protocols or participating in public health initiatives aimed at reducing opioid addiction and overdose deaths.
Vanderbilt’s Department of Economics should analyze the broader economic impacts of the increased tariffs on Chinese imports, particularly in relation to the university’s supply chain and procurement processes. This analysis can help inform strategic decisions to mitigate any negative financial effects.
The Vanderbilt Institute for Global Health could explore opportunities to engage in international collaborations focused on addressing the global dimensions of the opioid crisis, including partnerships with Chinese institutions to promote safer chemical practices and reduce the export of illicit substances.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Law School to engage in policy analysis and advocacy related to international trade law and its implications for public health. By providing legal expertise, the law school can influence policy discussions and contribute to shaping effective regulatory frameworks.
Vanderbilt can capitalize on the increased focus on combating the opioid crisis by developing interdisciplinary research initiatives that address the social, economic, and health aspects of the epidemic. This could enhance the university’s reputation as a leader in public health research and policy.
The emphasis on reducing the flow of synthetic opioids offers an opportunity for Vanderbilt’s School of Medicine to expand its research on addiction treatment and prevention strategies. By securing funding for innovative projects, the school can contribute to national efforts to combat the opioid epidemic.

Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on research, procurement, and public health initiatives.)

Average Relevance Score: 3.2

Timeline for Implementation

May 2, 2025 at 12:01 a.m. EDT: The elimination of duty‐free de minimis treatment becomes effective for covered goods from China and Hong Kong.
Within 90 days: The Secretary of Commerce is required to submit a report assessing the impact of the Order and to consider extending the rules to packages from Macau.

Based on the shortest timeline of 30 days (from April 2, 2025, to May 2, 2025) to implement the directive, the assigned score is 4.

Relevance Score: 4

Impacted Government Organizations

U.S. Customs and Border Protection (CBP): CBP is tasked with collecting duties, processing shipments, and ensuring compliance with the new tariff requirements, directly affecting their operations at the border and throughout the import process.
Department of Commerce – Secretary of Commerce: The Secretary of Commerce provided the notification regarding the adequacy of systems for tariff revenue collection and is responsible for submitting a follow-up report assessing the order’s impact, which ties into broader trade and economic policy oversight.

Relevance Score: 1 (Only 2 government agencies are directly impacted by this executive action.)

Responsible Officials

Secretary of Commerce – Verified systems for tariff revenue collection and responsible for submitting a report within 90 days on the impact and potential extension of the duty adjustments.
U.S. Customs and Border Protection (CBP) – Charged with enforcing the new duty requirements by processing shipments, overseeing formal entry decisions, and collecting duties from the affected imports.
Postal Carriers – Required to report shipment details, maintain an international carrier bond, and remit duties to CBP as stipulated by the Order.

Relevance Score: 4 (Directives affect agency heads and key operational officials responsible for revenue collection and border enforcement.)