Business
How Trump Scrapping the De Minimis Rule Could Affect Consumers and Retailers
President Trump’s executive orders on Saturday imposing broad tariffs on the country’s three largest trading partners also scrapped a shipping workaround for low-cost products, a move that is poised to alter how many online purchases are taxed.
The provision, known as the de minimis exception, has been used by many e-commerce companies to send goods to the United States from China without having to pay taxes on them. Mr. Trump’s decision to revoke the loophole set off confusion and chaos within the U.S. Postal Service, which initially said it would no longer accept packages from China and Hong Kong, before reversing its decision some 12 hours later.
Mr. Trump’s order on Saturday required that all goods leaving China must follow the same rules for higher-value shipments. His ban on duty-free handling of shipments worth up to $800 could shift the landscape for online sales from fast-fashion retailers like Shein and Temu, which rely on Chinese vendors. Both companies have been able to expand their market share largely by exporting goods into the United States without being subject to duties.
On Monday, leaders of Canada and Mexico reached deals with Mr. Trump to delay the tariff rollouts by 30 days. The broad 10 percent tariffs on Chinese goods went into effect on Tuesday.
Here’s what to know about the de minimis rule:
What is the de minimis provision?
The de minimis rule, or Section 321 of the Tariff Act of 1930, was originally aimed at allowing American tourists to send goods bought overseas to the United States without facing taxes. But more recently, companies have used the provision to ship products from other countries that have a retail value below a certain threshold without being subjected to taxes — a huge tax advantage.
In 2016, Congress raised the entry threshold to $800, from $200. Since then, the number of duty-free parcels has risen tenfold. Under the rule, packages can be shipped from other countries without paying tariffs, as long as the shipments do not exceed $800 per recipient per day.
Retailers have increased their reliance on the workaround in recent years, especially since Mr. Trump imposed tariffs on Chinese products in his first term. It underpins major business models, as Shein, Temu and many sellers on Amazon have used the de minimis exemption to bypass taxes.
A report released last week by the Congressional Research Service found that Chinese exports that are exempted by the de minimis rule soared to $66 billion in 2023 from $5.3 billion in 2018.
Why is the Trump administration targeting the rule?
The Trump administration has said it is focused on eliminating the de minimis loophole because of its apparent ties to the fentanyl trade. A White House official said in a call with a reporter on Saturday that the provision was causing the United States to lose tariff revenue — and that the large flow of low-cost goods from China has made it challenging for customs officials to identify fentanyl shipments sent through the mail.
Traditional retailers have expressed frustration with the workaround for different reasons. These retailers typically send big bulk shipments to their warehouses that are subjected to duties. Under pressure from the rising popularity of Chinese e-commerce sites like Temu and Shein, retailers like Walmart and Amazon had explored shifting more toward shipping directly to consumers from China. In late 2024, Amazon started Haul, which was intended to help it compete with Temu and other low-cost online retailers.
Express delivery companies like FedEx and UPS, which fly many of the packages across the Pacific Ocean from China, have spoken out in favor of preserving the de minimis exception. Supporters of de minimis have also long said that eliminating the provision would increase the burden on U.S. customs officials. Customs and Border Protection is also the primary agency responsible for carrying out much of Mr. Trump’s enforcement actions at the border.
How will online retailers be affected?
Shein and Temu, which rely on Chinese vendors, have been able to expand their market share largely by sending cheap goods into the United States. The two companies together have about 17 percent of the discount e-commerce market in the United States for fast fashion, toys and other consumer goods, according to the Congressional Research Service. The unraveling of the de minimis loophole threatens their operations.
While a majority of Shein and Temu products are shipped directly from China, both companies have diversified by working with more U.S.-based sellers and opening warehouses in the United States, which could limit some of the impact.
But other retailers might stand to gain.
“Amazon, as a whole, as well as other online retailers that fulfill from U.S. warehouses, will benefit as their competitors will be negatively affected,” said Yannis Bakos, an associate professor at the Stern School of Business at New York University who studies e-commerce.
What about smaller sellers and consumers?
Small and medium-size online retailers that source from China are likely to be affected, too. About a quarter of the biggest sellers on the e-commerce platform Shopify — sellers that are much smaller than Shein and Temu — also use the de minimis loophole to cheaply ship many of their products from China, said Aaron Rubin, the chief executive of ShipHero, a warehouse management software firm.
The loophole is “pretty widely used,” Mr. Rubin said. Beyond direct sales to customers, many small brands have also opted to ship products worth less than $800 at a time to Amazon to avoid paying taxes, Mr. Rubin added.
“In general, any of these sellers that were shipping directly from China are definitely going to be disrupted,” said Santiago Gallino, an associate professor at the Wharton School at the University of Pennsylvania who researches retail supply chains. Some retailers, including smaller companies, might eventually shift toward bulk orders and set up distribution centers in the United States, if the changes last, he added.
The ban on de minimis will also come at a cost for American consumers. A $15 dress from Shein, for example, could jump to $17, said Izzy Rosenzweig, the chief executive of Portless, a third party logistics company. Research has found that eliminating the provision entirely would result in costs of $11 billion to $13 billion for American consumers and disproportionately hurt poorer and minority households.
Jordyn Holman contributed reporting.
Business
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April 18, 2026
Business
Civil case against Alec Baldwin, ‘Rust’ movie producers advances toward a trial
Nearly two years after actor Alec Baldwin was cleared of criminal charges in the “Rust” movie shooting death, a long simmering civil negligence case is inching toward a trial this fall.
On Friday, a Los Angeles Superior Court judge denied a summary judgment motion requested by the film producers Rust Movie Productions LLC, as well as actor-producer Baldwin and his firm El Dorado Pictures to dismiss the case.
During a hearing, Superior Court Judge Maurice Leiter set an Oct. 12 trial date.
The negligence suit was brought more than four years ago by Serge Svetnoy, who served as the chief lighting technician on the problem-plagued western film. Svetnoy was close friends with cinematographer Halyna Hutchins and held her in his arms as she lay dying on the floor of the New Mexico movie set. Baldwin’s firearm had discharged, launching a .45 caliber bullet, which struck and killed her.
The Bonanza Creek Ranch in Santa Fe, N.M. in 2021.
(Jae C. Hong / Associated Press)
Svetnoy was the first crew member of the ill-fated western to bring a lawsuit against the producers, alleging they were negligent in Hutchins’ October 2021 death. He maintains he has suffered trauma in the years since. In addition to negligence, his lawsuit also accuses the producers of intentional infliction of emotional distress.
Prosecutors dropped criminal charges against Baldwin, who has long maintained he was not responsible for Hutchins’ death.
“We are pleased with the Court’s decision denying the motions for summary judgment filed by Rust Movie Productions and Mr. Baldwin,” lawyers Gary Dordick and John Upton, who represent Svetnoy, said in a statement following the hearing. “He looks forward to finally having his day in court on this long-pending matter.”
The judge denied the defendants’ request to dismiss the negligence, emotional distress and punitive damages claims. One count directed at Baldwin, alleging assault, was dropped.
Svetnoy has said the bullet whizzed past his head and “narrowly missed him,” according to the gaffer’s suit.
Attorneys representing Baldwin and the producers were not immediately available for comment.
Svetnoy and Hutchins had been friends for more than five years and worked together on nine film productions. Both were immigrants from Ukraine, and they spent holidays together with their families.
On Oct. 21, 2021, he was helping prepare for an afternoon of filming in a wooden church on Bonanza Creek Ranch. Hutchins was conversing with Baldwin to set up a camera angle that Hutchins wanted to depict: a close-up image of the barrel of Baldwin’s revolver.
The day had been chaotic because Hutchins’ union camera crew had walked off the set to protest the lack of nearby housing and previous alleged safety violations with the firearms on the set.
Instead of postponing filming to resolve the labor dispute, producers pushed forward, crew members alleged.
New Mexico prosecutors prevailed in a criminal case against the armorer, Hannah Gutierrez, in March 2024. She served more than a year in a state women’s prison for her involuntary manslaughter conviction before being released last year.
Baldwin faced a similar charge, but the case against him unraveled spectacularly.
On the second day of his July 2024 trial, his criminal defense attorneys — Luke Nikas and Alex Spiro — presented evidence that prosecutors and sheriff’s deputies withheld evidence that may have helped his defense . The judge was furious, setting Baldwin free.
Variety first reported on Friday’s court action.
Business
California’s gas prices push Uber and Lyft drivers off the road
The highest gas prices in the country are making it tougher for some gig drivers to make a living.
Gas prices have shot up amid the war in the Middle East. On average, California gas prices are the most expensive in the United States, according to data from the American Automobile Assn. The average price of regular gas in California is almost $6. The national average is a little above $4.
While Uber and Lyft drivers have concocted clever ways to cut gas consumption, they say that without some relief they will be forced to leave the ride-hailing business.
John Mejia was already struggling to make money as a part-time Lyft driver when soaring gas prices made his side hustle even harder.
“Unfortunately, it’s the economics of paying less to drivers and gas prices,” he said. “It actually is pulling people out of the business.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig work offers drivers the freedom to work for themselves and more flexibility, but being independent contractors also means they must shoulder unexpected costs.
Ride-sharing companies say they’re trying to help, but drivers say the gas relief comes with caveats. For now, drivers say they’re being pickier about what rides they accept, cutting hours and are looking at other ways to make money.
Mejia, who started driving for Lyft more than a decade ago, said in his early days, he would sometimes make $400 in three hours. Now it takes 12 hours to rake in $200.
The San Francisco Bay Area consultant is an active member of the California Gig Workers Union, so he knows he isn’t alone. California has more than 800,000 gig rideshare drivers, according to the group, which is affiliated with the Service Employees International Union.
On social media sites such as Reddit and Facebook, gig workers have posted about how the higher gas prices are eating into their earnings. Among the tricks they are suggesting: reducing the number of times the ignition is turned on or off, avoiding traffic, working in specific neighborhoods and at times with high demand and switching to electric vehicles.
Gig drivers usually have only seconds to decide whether to accept a ride on the app, but they have become more strategic about which rides and deliveries they accept.
That means they are more likely to sit back in their cars and wait for higher fares for quick pick-up and drop-off.
“I highly recommend the ‘decline and recline’ strategy, rejecting unprofitable rides until a better one appears,” wrote Sergio Avedian, a driver, in the popular blog the Rideshare Guy.
Pedestrians cross the street in front of a Lyft and Uber driver on Wednesday. High gas prices have made it hard for gig drivers to make a living, cutting into their profits.
(Jess Lynn Goss / For The Times)
Uber, Lyft and other companies have unveiled several ways to help drivers save on gas.
Uber said drivers can get up to 15% cash back through May 26 with the Uber Pro card, a business debit Mastercard for drivers and couriers. Based on a worker’s tier, they can get up to $1 off per gallon of gas through Upside — an app that offers cash rewards — and up to 21 cents off per gallon of gas with Shell Fuel Rewards. The company also offers incentives for drivers who want to switch to electric vehicles.
“We know the price of gas is top of mind for many rideshare and delivery drivers across the country right now,” Uber said in a blog post about its gas savings efforts.
Lyft also said it’s expanding gas relief through May 26 because the company knows that the extra cost “hits hardest for drivers who depend on driving for their income.”
The company is offering more cash back, depending on the driver’s tier, for drivers who use a Lyft Direct business debit card to pay for gas at eligible gas stations. They can get an additional 14 cents per gallon off through Upside.
Drivers say the fine print on the offers dictates which card they use and where they fill up gas, making it difficult for them to save money.
“If I do the math, it’s ridiculous,” Mejia said. “They’re offering us nothing.”
Uber declined to comment, but pointed to its blog post about the gas relief efforts. Lyft also referenced the blog post and said “the gas savings were structured through rewards to maximize stackable opportunities.”
Guests at The Westin St. Francis hotel get into an Uber.
(Jess Lynn Goss / For The Times)
Gig workers have struggled with rising gas prices in the past.
In 2022, Lyft and Uber temporarily added a surcharge to their fares amid record-high gas prices following Russia’s invasion of Ukraine. This year, Uber is adding a fuel charge to its fares in Australia for roughly two months to offset the high cost of gas for drivers. Lyft said it hasn’t added a fuel charge in the U.S. or elsewhere.
Margarita Penalosa, who drives full time for Uber and Lyft in Los Angeles, started as a rideshare driver in 2017. Back then, gas was cheaper. She would easily hit her goal of making $300 in eight hours. Now she’s making just $250 after working as much as 14 hours.
Gas prices, she said, used to be less than $3 per gallon. Now some gas stations are charging more than $8 per gallon.
“Take out the gas. Take out the mileage from my car and maintenance. How much [do] I really make? Probably I get $11 for an hour,” she said.
Jonathan Tipton Meyers wants to spend fewer hours as a rideshare driver.
He already juggles multiple gigs even while driving for Uber and Lyft in Los Angeles. He’s a mobile notary and loan signing agent, a writer and performer.
Driving is “a very challenging, full-time job,” he said. “It’s very taxing and, of course, wages were just continually decreasing.”
John Mejia, a longtime Lyft and Uber driver, poses for a portrait before attending a meeting about unionizing gig drivers.
(Jess Lynn Goss / For The Times)
Even if oil continues to flow through the Strait of Hormuz, which Iran reopened Friday, it could take a while for gas prices to come down to earth, said Mark Zandi, the chief economist at Moody’s Analytics.
“There’s an old adage that prices rise like a rocket and fall like a feather,” he said. “I think that’ll apply.”
In the meantime, it will be survival of the fittest drivers. If enough of them decide to leave the apps, the ride-hailing companies could be forced to raise fares further to attract some back.
“Those who approach rideshare driving strategically, tracking expenses, choosing trips carefully, and optimizing efficiency are far more likely to weather periods of high gas prices,” wrote Avedian in the Rideshare Guy blog. “For everyone else, a spike at the pump can quickly turn rideshare driving from a side hustle into a money-losing venture.”
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